Buyer Don'ts

Here is a short list of First Time Home Buyer "Don't Dos" when you are getting ready to apply for a Mortgage Loan with down payment assistance. This is EXTREMELY IMPORTANT PLEASE READ CAREFULLY!

1) Do not have anything else financed. That debt will affect your Debt to Income Ratio and can prevent you from qualifying for a home. It will most certainly reduce the amount of money you can Borrow for a home.

2) Do not apply for credit anywhere until the home transaction is Closed. If you do, your credit score may go down short term and the Underwriter will ask you for a letter explaining why you applied for additional credit.

3) Any amount financed outside of a mortgage will decrease the amount of money you can borrow for a mortgage. Examples: No furniture, no cars, no boats, no debt consolidation loans, no additional credit cards or lines of credit.

4) Do NOT put any “one time” or unusual deposits into your bank account except for Payroll deposits. If you do, you will be asked to document in verifiable detail where those deposits came from and why they are in that bank account. Those additional deposits may prevent you from qualifying for a down payment assistance loan. The Sponsoring entity may say that they consider that one deposit as ongoing income. Yes that happens all the time!

5) Do not make any payments on collections unless you discuss it with your Approved Down Payment Assistance Loan Officer. If you do, it may, (probably) lower your credit score in the short term.

If you can keep from doing the above actions, your experience will be a relatively easy and quick path to Home Ownership!

If you have any questions, please call me. I’d be glad to help.

INFORMATION:
Roger Lazzarino
Licensed Real Estate Broker
Certified Mortgage Specialist
Mid Florida Realty