Welcome to our weblog collection, “Ask A Mortgage Officer,” the place our skilled Motion Mortgage mortgage officers present potential debtors with priceless insights into mortgage lending. 

On this version, we’ll hear from two mortgage mortgage officers serving purchasers in several elements of the nation. Brad works with homebuyers within the gorgeous metropolis of San Antonio, whereas Julie assists potential purchasers in Fort Myers, Florida. 

They’ve each encountered a variety of challenges and pitfalls of their line of labor, they usually’re right here to share real-life tales and sensible ideas that can assist you keep away from comparable conditions when making use of for a house mortgage. 

Whether or not you’re a first-time homebuyer or a seasoned actual property investor, our objective is to assist make your home-buying journey simple and environment friendly.

Problem #1: Debtors who need to skip the house inspection.

Brad Dawson, NMLS #: 635442
Area: San Antonio, Texas

What Occurred: As a mortgage officer with 25 years of expertise in client lending, I’ve seen loads of occasions when debtors selected to not conduct a house inspection earlier than shopping for a brand new development house. One explicit incident that involves thoughts is of a borrower who was excited to purchase their dream house, a newly constructed property in a creating neighborhood. 

Regardless of the recommendation from the mortgage officer and actual property agent to get a house inspection, the borrower was assured that because it was new development, there wouldn’t be any main points. Nevertheless, after shifting in, the borrower found that there have been a number of points that may have been caught in a house inspection, equivalent to defective wiring and poor insulation, which resulted in greater power payments. In consequence, the borrower needed to spend 1000’s of {dollars} to repair these points, which might have been prevented if that they had performed a house inspection earlier than closing on the property.

Brad’s Recommendation:

My private tip for consumers trying to keep away from the identical scenario is to at all times prepare for a house inspection earlier than buying a brand new development house. Though it could look like an pointless expense, a house inspection can uncover any potential points with the property that will not be obvious through the preliminary walkthrough or from the builder’s disclosures. 

Moreover, it’s essential to work with a good house inspector who has expertise with new development properties and may establish any points that will come up. By conducting a house inspection, debtors could make knowledgeable selections in regards to the property and negotiate repairs or credit with the builder earlier than closing on the house mortgage. This may doubtlessly save debtors 1000’s of {dollars} in restore prices and make sure that the property is in good situation for years to return.

Problem #2: Debtors had been informed to attend for higher credit score scores.

Julie Scott, NMLS #: 445936
Area: Fort Myers, Florida

What Occurred: As a mortgage mortgage officer, I typically encounter debtors who’re struggling to qualify attributable to low credit score scores. Not too long ago, I had the pleasure of working with a pair who had been referred to me by a realtor. They wanted to safe a standard mortgage, however their credit score scores had been too low for approval. Sadly, their earlier lender had merely informed them to attend and hope for his or her scores to extend over time. Fortunately, I used to be capable of provide a extra proactive resolution. 

Regardless of not being a credit score counselor, I recommended that we pull their credit score and run a credit score simulator to see if we might elevate their scores rapidly. Because of my assistant’s work on the simulator, we had been capable of establish that paying off a number of bank cards would elevate their scores to the mandatory stage for approval. The purchasers had already paid off the playing cards, so all they needed to do was present us with up to date statements, which they did promptly. With that data in hand, we submitted a fast rescore request and obtained the outcomes simply three days later. The improved scores meant we might approve them for the mortgage they wanted to buy their dream house. 

Because of this revolutionary strategy and willingness to go the additional mile, I gained a brand new shopper and secured a $700K mortgage for them. The realtor was impressed, and the purchasers had been thrilled with the outcomes. Even higher, they plan to return again to me when their scores enhance additional for a refinancing alternative. It’s moments like these that remind me why I like being a mortgage mortgage officer – making homeownership desires a actuality with good and revolutionary options.

Julie’s Recommendation: 

Having a superb credit score rating is admittedly essential in relation to getting a house mortgage with the very best rate of interest. That’s why I at all times advise my purchasers to be diligent about retaining credit score scores in tip-top form. 

One of many best methods to do that is by paying your payments on time each month. Late funds can actually dent your credit score rating, so be sure to’re at all times on prime of them — and in case you can, pay balances off weekly to keep away from accumulating curiosity prices. One other bit of recommendation is to maintain your credit score utilization low. Ideally, you need to goal to make use of not more than 30% of your obtainable credit score — so in case you can, repay as a lot as you possibly can of your complete steadiness, not simply the minimal fee required.

It’s additionally essential to be aware of how typically you apply for brand spanking new credit score. Making use of for too many bank cards or loans in a brief period of time can negatively influence your credit score rating. So, attempt to restrict the variety of purposes you submit and area them out over time. 

Lastly, it’s at all times a good suggestion to control your credit score report and dispute any errors or inaccuracies chances are you’ll discover. Frequently monitoring your credit score rating and report can assist you catch any points early on and take steps to deal with them earlier than they change into an issue.

On this case, the debtors had been capable of get their scores excessive sufficient to qualify for the mortgage they wanted. My recommendation is to control your credit score so that you don’t find yourself in the identical scenario.

Have a query? Our mortgage officers have skilled recommendation!

Our “Ask A Mortgage Officer” weblog collection helps house consumers keep away from widespread hassles that pop up within the mortgage lending course of. Be looking out for the subsequent installment within the subsequent month or so. 

In case you’re in want of a reliable lender to information you thru the homebuying journey, know that our skilled mortgage officers are pleasant, educated, and devoted to serving to you obtain your homeownership targets. Contact a mortgage officer in your space right this moment!