June 16, 2019

Vimeo Channel YouTube Channel

Don’t Make These Home Loan Mistakes

Don't Make These Home Loan Mistakes

Buying a home for the first time is stressful, but there are things you can do as a first-time buyer that will help. Avoid these big mistakes when planning your mortgage.

Don’t Change Jobs Before Your Mortgage Closes

This advice does not apply to everyone, but it does for those who are contemplating changing the nature of their employment from having a boss and a traditional workplace to a freelance, contract, or per-project type work.

There are different FHA home loan rules for non-traditional employment, freelance jobs, commission income, etc.

If you were working in a typical job at the start of the home loan application process and are tempted to switch to contract, freelance, or commission work, your job switch could hinder your mortgage loan process since the income rules for those types of jobs require a two-year employment history, profit-and-loss statements where applicable, and proof of income in the new freelance/contract/commission work.

Don’t Skip The Home Inspection

Do NOT rely on the FHA appraisal alone to tell you the condition of the home. You will be disappointed, and you will not have help from the lender or the FHA if you skip the inspection and buy a home with defects that are detected after the loan closes.

Don’t Open New Credit Lines

…or close old ones. Opening new lines of credit makes your lender think twice about your debt ratio calculation and other factors. You want to keep your existing debt and your potential debt low.

Don’t Omit Things From Your Mortgage Loan Application

Some borrowers are tempted to strategically leave out certain information on a credit application because they fear being turned down for the loan. Leaving it off your application does not mean the lender will never know about it-the lender’s job is to see your entire credit picture and the loan officer has the tools to get that information.

Borrowers will see consequences by leaving out information on the credit application; it’s best to be up front about all your financial obligations (including any required alimony, child support payments, or student loans) and let the lender make the call.

Don’t Assume You Do Not Qualify For An FHA Mortgage

Talk to a participating FHA lender about your circumstances, your financial goals and needs, and see what options may be open to you. You may be surprised to learn that you have several options with an FHA mortgage.

Bruce Reichstein - Staff Writer

By Bruce Reichstein

June 7, 2019

Bruce Reichstein has spent over three decades as an experienced FHA and VA home loan mortgage banker and underwriter where he was responsible for funding “Billions” in government backed mortgage loans. He is the Managing Editor for FHANewsblog.com where he educates homeowners on the specific guidelines for obtaining FHA guaranteed home loans.

Connect with Bruce:

 

Browse by Date:

About FHANewsBlog.com
FHANewsBlog.com was launched in 2010 by seasoned mortgage professionals wanting to educate homebuyers about the guidelines for FHA insured mortgage loans. Popular FHA topics include credit requirements, FHA loan limits, mortgage insurance premiums, closing costs and many more. The authors have written thousands of blogs specific to FHA mortgages and the site has substantially increased readership over the years and has become known for its “FHA News and Views”.

5850 San Felipe Suite #500, Houston, TX 77057 281-398-6111.
FHANewsBlog.com is privately funded and is not a government agency.

Share This