Staying approved for your home loan – Richard Shuman P.A. Enter Realty Inc & Clifton Financial Services

The Last Minute Credit Check

Did You Know?
Your mortgage lender may run a second credit report just prior to closing. Red flags that appear in this credit report can disqualify you for the mortgage loan.

Your actions after receiving lender approval for a mortgage loan can disqualify you for the loan. A mortgage loan is conditionally approved, with the lender reserving the right to re-verify credit, income, assets and employment at anytime. The lender may cancel the loan if there are any adverse changes to your qualification status.

Debt-to-Income Ratio

Your debt-to-income ratio is your gross monthly income divided by the amount you spend on debt. Debt items include mortgage payments (including principal, interest, insurance, tax), car payments, credit card payments, student loans, child support payments, etc.

The lender considers debt-to-income ratio when approving you for a mortgage loan. Only 28 percent of your income can be used for your mortgage payment, which includes taxes and insurance; and 36 percent for the mortgage payment plus the rest of your debt. Anything you do to negatively affect your debt-to-income ratio may change an "approval" to a "disqualification."

Avoid Red Flags

A red flag is any inquiry made regarding your credit worthiness. If you decide to purchase a big ticket item - like a car, boat or furniture - prior to closing, you're at risk of having a red flag show up on your credit report.

Keep Your Money Where It Is

The balances of your liquid assets are considered when approving you for a mortgage loan. These liquid assets may include checking accounts, savings accounts, certificates of deposit, money market accounts, retirement accounts, stock and mutual funds.

Avoid changes to the balances of these accounts. Do not close accounts. Do not change banks. A large withdrawal or deposit to any of these accounts will trigger a red flag for your mortgage lender. If a red flag is triggered, you may be asked to produce a paper trail tracking large withdrawals and/or deposits.

Employment Status

For most employees a change of jobs to one of equal or higher pay will not trigger a red flag. However, sales people should not change jobs prior to closing on their mortgage loan.

Salaried Employees
If your income is strictly salary than you should not have a problem changing to another job of equal or greater income. If, however, your income includes salary and bonuses, commissions and/or overtime, you should not change jobs prior to closing.

Hourly Employees
If your income is based solely on a 40-hour work week without overtime, than changing to a job with equal or greater hourly pay should not be a problem. However, if your income is dependent upon overtime pay, do not change jobs prior to closing.

Commissioned Employees
If your income is from commission or a substantial portion of your income is from commission, then you should not change jobs prior to closing. Typically, mortgage lenders average your commissions over the last two year period to determine income. Changing employers eliminates the two-year commission history and places uncertainty on your income status.

Talk to Your Loan Originator

Do not make any changes to your financial and employment status without first talking to your loan originator.

Richard Shuman P.A. Enter Realty Inc & Clifton Financial Services 670 N. Orlando Ave suite 101 Maitland, Florida 32751

Thank you very much once again for your guidance in selecting a Townhouse for my daughter. Your straightforward and professional approach was not only impressive but greatly appreciated ! Rene

Relocation is just one specialty of mine. Having relocated my family from Massachusetts and helping a ton of others make a move as hassle free as possible. When moving a family, happy kids make all the difference and I can help you find perfect place (even if you are the kid at heart).

From Great Seminole & Orange County Schools to having lots of activities in Central Florida for the whole family. Residential and Commercial Real Estate throughout Central Florida with one phone call or email to Richard Shuman, Real Estate and Mortgage Solutions

Available 7 days a week. Call or email me anytime for Central Florida Residential and Commercial Real Estate including Orlando Real Estate, Oviedo Real Estate, Winter Springs Real Estate, Winter Park Real Estate, Lake Mary Real Estate, Casselberry Real Estate, Apopka Real Estate, Kissimmee Real Estate and Florida Vacation Homes near the Theme Parks or Beach. I work for FLORIDA RELOCATION TEAM in Maitland but handle areas around Orlando including Seminole County, Orange County, Volusia County, Osceola County and Lake County or I can refer you to another TOP SELLING AGENT almost anywhere in the world. Referrals are always appreciated. EXPERIENCE THE SKIPtheBULL DIFFERENCE IN REAL ESTATE & MORTGAGE SOLUTIONS TODAY!!! Richard Shuman P.A. - why settle for an average agent when you can work with the best?

Richard,
thank you, thank you, thank you I have been looking on the web the last few
weeks and filled out my wants then get shown everything but what I'm asking
for. . . Thanks again Jan

Hi Richard,

I want to thank you for your immediate responses. I have never seen a Realtor perform like you do.

Joe

Richard, Thank you for your quick and informational response. You were the only agent to address all of my areas of interest and I appreciate that.

Amanda

Thank you for making this sale a very positive experience for both Lisa and I.

Roger

Hi! Thank you! I really appreciate your help with this, and advice on which areas to check out...

Heather

I look forward to working with you. Your website has made my search much easier.

Kathleen

Everything is going great. Spending time and money fixing up things around the house.

She loves the house ...

Thanks for everything again.

David

Thanks Richard For taking time out to talk to me and I look forward to meeting you when I come to Florida in July.

Daisy