by Gaye Jones ~ AnnieMac Home Mortgage
I’ve said for years that “no one lives according to loan guidelines” and it is truer today than ever. We have seen so many new restrictions and COVID overlays from all the agencies (FHA, VA, Fannie & Freddie) that it is truly hard to keep up. The best advice is to plan early. When you are considering buying a home, whether your 1st or your 5th, you need to prepare! I suggest 90 days before you want to start searching for a home you get with a local lender to find out if you qualify and if there are any hurdles you are going to have to overcome.
There are several things you should NOT do if you are planning to make a move or refinance your current home in the upcoming months.
Do not move money around (unless you are prepared to gather a lot of paperwork and give all the bank statements from the transfers); Do not deposit cash; Do not count on using your bitcoin funds; If you are selling something to raise your down payment – document, document, document!; Do not change your tax filing (ie: from schedule C to Corporation filing); Do not change from w2 to 1099 (unless you are willing to wait for 2 tax years; Do not be 30 days late on ANYTHING; Do not co-sign on a loan (you have to qualify with that debt until the borrower makes 12 payments); Do not change bank accounts; Do not make large deposits unless you can document the source; Do not apply for any new credit.
These are just a few of the main issues we see with borrowers who had no idea that this could affect their qualification. We can’t un-ring the bell, so it is imperative that you seek out professional advice in advance of finding that “perfect” home that you may not qualify to buy or before you sell your home and find out you are not qualified to buy the next one!