The Dos and Don'ts of Lending
Dos and Don't of Lending
Talking about actions that will hurt and help your chances to buy your dream home with ease. Real estate in the Treasure Valley is hot and homes are selling fast! Be confident that you increase your chances of expanding your loan rage and purchasing your beautiful home.
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Jesse: Hey everybody, another Buying the 208 video for you, again, brought our partner lender and good friend, Bryce Gonser over here, and we're going to talk about the do's and don'ts of lending.
Bryce: Yes and there's so many of them today, that we're only going to get specific on a couple of them guys, specifically, when it comes to talking about like credit, and your FICO score and stuff like that, because that's a question that I get all the time and sometimes it can be really bad for deals if you're going in, you know, opening up new lines or closing lines, and it's just not talked about a lot and so we want to make sure that when you guys go through the process, that you're good to go that you're solid.
Jesse: So what are the major don'ts, right?
Bryce: So I mean, this form, I mean, pretty much hits it on the head, when we're talking about don't do this and it's a conversation that I always have with my borrowers and I think for the don'ts, you know, the don'ts we're talking about, don't apply for new credit, don't go and open up, you know, new lines, new credit cards don't apply for stuff because it's gonna ding you and it can shorten that length of credit history that you've already established, right? So that'd be probably number one, don't open anything else up. That's new and a lot of times, the second one that I get asked a lot is can I go get new furniture or can I go get a new vehicle? And sometimes, like, you know, if we're months and months out, we'll have to take a look, and it's okay. But if we're in a 30-day escrow, the last thing we want at the very end is for a new vehicle to show up or that we just put 20 grand on a RC Willey credit card for furniture, we get it. We know that you need furniture. But let's wait till we close then call it good, you know?
Jesse: It's tempting to go, you know, buy new stuff for your brand new home. But it's again, there's the potential where it could negatively affect the loan where you might not have that new home in the future, right? Yeah, exactly.
Bryce: And then the third thing guys just keep your employment you would be I mean, that sounds like a simple thing is don't switch jobs, especially to 1099 or self-employed. But keep your job and it comes up more times and you would think that it wouldn't happen. But it comes up all the time. Somebody quit their job, you know, and we're going through and we got 10 days to close and now we have no stable income source.
Jesse: And we're both entrepreneurs. So we're wholehearted and believe in, you know, going out following your dream, and maybe changing career paths to what you're really passionate about. But don't do it while you're in the process of purchasing.
Bryce: Yeah, don't do that, because you ain't gonna get that new home anytime soon if that is the case and then the second half of that guys is the do's. So kind of the opposite of what we just talked about, stay current on all your payments, you know, don't start skipping payments, don't let you know credit cards build-up, just keep doing exactly what you're doing. You know, stay on time with your employment too you know, don't do anything that would reduce hours, don't do anything that obviously changes jobs or anything like that and then the last thing guys is just prepared to disclose a lot of your financial play in your own personal life. So tax returns W2s if you have a business return, if you have LOC, they will see it all. So a lot of times people can get frustrated, especially with self-employed people. Why are they asking me for all these documents is because we have to follow the regulations set in place by other parties, Fannie, Freddie HUD, you know, VA, they all have regulations that just the loan officer and the bank have to follow. So just be prepared that we sometimes don't get it all at the front. So when it gets out of underwriting, sometimes we got to go back and we got it we find you know, stuff will come up, we have to gather more, you know, additional documentation.
Jesse: Yep and again, the more you can disclose at the beginning, the better to give you the lender a full picture of your financial status and there might be opportunities to you know, get you a different loan product or a higher loan value if they know all the information upfront.
Bryce: Yeah, and you know, a lot of times they're going to ask a lot of questions upfront together but stuff gets missed, you know, there's always kind of one-off situations, stuff like that. So just by knowing kind of how these you know, watching these videos and knowing how the process works, it's always better to disclose, disclose, disclose, rather than, you know, something comes up at the end.
Jesse: Cool. So again, do's and don'ts if you guys want this very easy-to-read covers pretty much everything we mentioned. Give us a shout we'll send over a link or even drop off a printed copy for you and in the meantime, give us some likes comments and definitely subscribe. We have some fun stuff coming up.
Bryce: Questions too, we want them questions if you guys want to make videos can I know what base off of you guys are interested in? So drop those below too. So hope you guys enjoyed that video kind of talking about you know what's going on in the market right now how you know the median purchase price stuff like that low-interest rates, make sure that you like subscribe, do the thing send out questions we want to know what's going on. We want to interact with you guys so anything that you can give us back much love we appreciate it.