Mortgage Nightmares That Can Ruin Your Life
You have probably heard some
horror stories about the mortgage refinance or home buying process.It is
easy to get stressed out when trying to work through one of these processes.If you are educated and prepared, you can avoid some of the most common mortgage nightmares,
and you need not worry.
Not having enough money in your bank account is
one common mortgage nightmare.
It is best to put the down payment money in y our account at least two to three
months ahead of time and let it sit there. You will have to prove to
the mortgage holder that you have enough money in your bank account for the down payment, the earnest money
and all of the closing costs.
The lender will require documentation to verify that the money is in your
account and to prove where the money came from if the deposit to your account was recent.You cannot use cash for a down payment, so make sure the money is in your
Banks feel a lot better about approving you for a
refinance or new mortgage if you have had the money in your account for quite a while. They don’t really feel as safe
when you are moving money from one account to another, as it becomes hard to track. This is a common mortgage
mistake and can lead to a lot of problems if it happens. The bank will require you to
produce a paper trail for documentation to show where the money came from etc. and this process can take a long
time to get all the paper work together.
If the paperwork for this documentation is not complete, they may not accept it as
proof that your money has been there for a long time. This is important for
both conventional loans and bad credit mortgage loans.
For example, when working with a new loan or
mortgage refinancing, you will need to tell the loan officer where your down payment will be coming
loan agent will notate this on the application and will verify it by looking at the bank statements you give
closing, this will be verified again, and if the money isn’t there, or you decide to take your down payment
money from a different account, you may have to start over on the approval for your mortgage
refinance. This can be even a bigger problem if you have bad credit. You may have even signed all of
the closing papers, but if the money is coming from a different place, the underwriters must start over on the
underwriting process. This could delay your loan funding for a while or may even cause you to lose the loan
Never try to withhold any information on your
mortgage application. If you misrepresent any of the information or omit anything, you may be committing a felony in
the form of fraud. You will always want to be totally truthful on your applications and paperwork and give
accurate information. Paying attention to the details can keep you from experiencing the mortgage nightmares you