The Do's & Dont's: Homebuying

Buying a home is fun, exciting, and validating. But make no mistake, it’s also a business transaction that can become a competition—especially in a seller’s market, when housing inventory is down across the country or in a specific area. The homebuying process becomes even more competitive in this type of market because there are more people wanting to buy homes than there are homes for sale. Obtaining a mortgage in this lending environment continues to be challenging and even more so now with the competitive nature of the housing market in 2020 into 2021. That’s where Blayney L. White comes in; a seasoned and top-rated mortgage professional with Cross Country Mortgage LLC, offering tailored, unique, and responsible lending solutions. We sit down with Ms. White to learn best practices and the Do’s and Don’ts for today’s market.

G: Tell us about you and the services and expertise you bring to the home buying table.

BW: To win, I provide a consultative approach combined with extensive knowledge of the mortgage industry and deep connections with other professionals in the market; affording our team the competitive edge. Over the past 20 years I have utilized my experience to guide clients through the purchasing and refinancing process. In addition to purchasing a first or second home, many of my clients have built real estate investment portfolios that provide passive income for a soft landing in retirement.

G: What’s the most important thing for potential buyers to do first?

BW: You need to be properly prepared for the process. In addition to your ability to make a strong offer on the home you want, the ability to close quickly is critical. Sellers and agents don’t want to lose valuable time waiting for a potential buyer to get approved for a loan, only to have it fall through. Don’t settle for a pre-qualification. Many won’t even work with a buyer who isn’t already pre-approved. With a pre-approval, you’ll be able to negotiate your home purchase confidently. Real estate agents and sellers will know you are ready to make a deal, and a pre-approval may help streamline your loan process, resulting in a smoother transaction.

G: So if buyers are well prepared, what’s the turnaround time for a close? 

BW: Transactions move much faster here in the San Francisco Bay Area. For example, in August 2020, our average time to close a loan was 29.5 days. The national average to close a loan was 49 days as of August 2020, according to Ellie Mae. 

G: Once a buyer is prepared and the process in underway with your team, are they on a fast-track to close? What should and shouldn’t a buyer do during this period?

BW: During the loan process, there are many factors that our loan processors and underwriters will review when considering you for a loan. Processors may request additional or updated documentation, and underwriters may need clarification on certain aspects of your finances. But that’s not all.

Beyond reviewing and requesting documentation on your financial history, we’ll also be paying attention to what you’re doing with your finances during this time. Even though the initial application is complete, and our team has most (if not all) of the documentation required to review the loan, you shouldn’t go finance a new suite of living room furniture.

G: Why not? Buyers are always eager to get new items and furnishings for their anticipated abode.

BW: Because any use of credit will affect important aspects of your financial standing, such as your debt-to-income ratio and credit score. It’s essential that both remain consistent during the loan review process, otherwise the details of your loan could change. You may be required to provide a written explanation of your activity, or worse—your loan could be canceled.

G: So, how can you avoid putting your loan at risk?

BW: Let’s start with the DO’s

It may seem obvious, but you need to complete your application thoroughly. Be sure to provide all of the required information and documentation. 

You also need to make sure you are responsive. Make sure to answer questions and requests promptly. Additional requirements (known as loan conditions) may need to be cleared to help underwriters approve your loan.

Be transparent. It’s crucial that you disclose all other loans and credit with your loan officer so your application will not get held up.

Don’t go out of town. Seriously, you’d be surprised how often this happens around closing date. Be accessible as your closing date approaches. Schedule time to review and sign documents and pay closing costs and down payment.

G: And the DON’Ts?

BW: Slow it down big spenders! Don’t make any major purchases on credit. Using your credit cards or opening new lines of credit to acquire cars, appliances, or furniture will alter your debt-to-income ratio, negatively affect your ability to make monthly mortgage payments, and harm your ability to qualify for a loan.

Don’t move money around in your accounts. This type of activity may appear to be an attempt to hide debt or conceal large balances.

Don’t use untraceable money. Using large amounts of untraceable cash can make it difficult to understand your spending habits and cash flow.

Don’t make a career change. Staying at your current job until after your loan closes demonstrates income stability.

G: Okay, we’ve got a clear set of guidelines to follow. Any last parting advice? 

BW: It’s helpful to remember that this information can not only help you when your loan is being reviewed, but it can also be useful if you’re just getting ready to apply. This list, of course, is for guidance purposes only. Sometimes life throws curve balls that we have no choice but to address. We understand and we are here for you when one of those curve balls comes your way.

BlayneyWhite.com

Blayney L. White
NMLS ID 239189
Cross Country Mortgage LLC NMLS3029
415.891.0004
Blayney.White@myccmortgage.com