Davidson Realty, Inc.

Brenda Williamson’s 4 tips for a seamless lending process

August 27, 2019

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Posted by in News

 

For many homebuyers, the lending process is full of potential obstacles that create delays and undue stress. There are, however, steps the buyer can take to mitigate many of these obstacles and make the process much easier. Lender Brenda Williamson provides four tried-and-true tips to help you pave a smooth road to the closing table:

 

1.) Understand the various options for YOUR situation.

It is important to work with a lender that will help plan a mortgage that is best for the buyer. A buyer may ask for the typical 30-year conventional fixed mortgage, but that may not be the best option for them. For a buyer with a lower credit score and down payment less than 20%, the monthly PMI (private mortgage insurance) payment would be muchhigher than necessary.

 

PMI is based on the amount you are putting down, the loan amount and credit scores. For buyers with higher credit scores seeking a conventional loan with less than 20% down, the monthly PMI amount can be very low. The higher the scores, the lower the PMI amount.

 

Another example depends on how long the buyer will be in the home. Will they be moving in five years or so? It’s important to all

 

2.) Ensure the binder deposit comes from your own account.

When purchasing a home, a buyer must show proof of the funding source for the binder deposit check. Be sure it comes from funds in your own checking or savings account. Do not let anyone else pay this unless you speak with your lender first. If it does not come from your account, it must be considered “gift funds” from a relative. A buyer does not want to move large amounts of cash in or out of their bank account.

 

3.) Avoid making major account changes until after closing.

When buying a home, wait until after closing to open any new accounts or purchase anything for the new home. In addition, do not make changes to credit or bank account status or make large deposits other than pay checks.

 

Within 10 days of closing, the lender will do a “credit refresh” to make sure the buyer has not increased their debts, making them unqualified for the home due to higher debt ratios.

 

4.) Avoid changing jobs or paycheck method during the loan process.

Verification of employment is completed at the beginning of the loan process and again right before the closing date to confirm the buyer is still employed.

 

Fluctuations in the way an employee is paid can adversely affect a loan. For example, a salaried teacher moving to a commissioned auto salesperson.

 

Brenda Williamson is an experienced mortgage planner  with almost 15 years in the industry. As a Loan Officer with Cornerstone Home Lending, she aims to provide superior service and mortgage guidance to help buyers select the best residential loan program for their needs. As Brenda says, “I believe in making the homebuying experience as easy and effortless as possible, so they enjoy the journey from start to finish.”

 

Contact Brenda today on her cell phone to start your journey at 912-856-8700 or bwilliamson@houseloan.com.

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