Avoid "Mortgage Approval-Ivy". Don't Make These Mortgage Mistakes

Reblogger Roy Kelley
Education & Training with Realty Group Referrals 16766

Don't subject yourself to any of these predicaments during your mortgage process.  Follow the advice of your Loan Officer from beginning to end.

 

 

Avoid "Mortgage Approval-Ivy".

Don't Make These Mortgage Mistakes

 

When our boys were little, we decided to construct a home in the Lincoln-Way Area of the Chicago Southland.  When choosing a lot to build on, we visited subdivision after subdivision in the area.  

 

After deciding on the subdivision we wanted, we began a search for our building site.  We walked property after property trying to find the "perfect" lot.  

The lot we ended up choosing was located at the highest point of the street ... great for drainage.  And the lot was filled with trees that, although small at the time, would mature into nice shade for our home once the land was cleared and sunshine could reach them.

After the construction of the home was behind us, there was still a lot to do outside in the yard.  We dug, planted, added landscaping, mowed and pruned.  After a few years passed, the flowers bloomed, the plants and shrubs matured, and the trees filled out providing the shade we had hoped for.  Everything flourished.

Even the poison ivy ...  

Poison ivy was the one negative I found living on that wooded lot.  I ended up itching ... a lot.

Now anyone that has suffered through poison ivy will tell you plain and simple ... it's awful.  The itching and irritation drive you crazy and it's hard to get rid of.  

I quickly came to the conclusion that the best solution for treating poison ivy was to NOT catch the dang stuff in the first place.  I think that's the best solution for "Mortgage Approval-Ivy" too.  

What's Mortgage Approval-Ivy?  

It's the irritation, angst, and suffering felt by mortgage applicants if they commit one of the following mistakes after receiving mortgage approval: 

     Mistake #1:  Accepting a gift or check from someone NOT named on the Contract or Loan Application and then using it for Earnest Money.

     Recommendation:  If you are the Buyer and Loan Applicant, the check for Earnest Money should be written from your funds.

     Think of this money as an advance on your down payment ... or the funds needed to Close - and therefore, that money has to be identified as being yours (or at minimum, communicate to your Loan Officer that the EM will be a gift from a Family Member.  Act proactively in this regard.  Processing will move more quickly and smoothly).     

     Alert:  Checks from Non-Borrowing, Non-Buying Parties cause problems ... and "Mortgage Approval-Ivy"!

 

     Mistake #2:  Needlessly transferring money from one bank to another ... or from one account to another within the same bank - can cause issues.      

 

     Big Misconception:  All funds needed to cover down payment and closing costs (commonly known as "Cash to Close") must be accumulated or deposited to one account.  NOT TRUE!   

     Separate bank accounts (or Investment accounts) can all be verified and documented ... and their collective balances can be totaled to demonstrate enough "Cash to Close" (funds needed by Borrower(s) for Approval/Closing).   

     Alert:  Needlessly moving funds back and forth between accounts creates a longer paper trail for documentation.  This slows the mortgage process down and causes "Mortgage Approval-Ivy". 

 

     Mistake #3:  Working fewer hours during the time leading up to your Application for Mortgage.       

      Tip:  This is especially important for hourly-paid employees.     

     Alert:  Mortgage Underwriters look unfavorably when comparing low/lower, Year-to-Date gross incomes reported on submitted pay stubs to earlier incomes/pay stubs. (The most recent pay stubs are required from Applicants at the time of Mortgage Application).  Avoid "Mortgage Approval-Ivy" by continuing to work your normal amount of hours at your job, when possible.     

 

     Mistake #4:  Accepting cash or "Gifts of Cash", then depositing them into the bank account for which the funds for Closing are then verified.     

     Tip:  There are NO acceptable means by which Cash can be verified (and found acceptable) by a Mortgage Underwriter.

     Alert:  Stay safe from "Mortgage Approval-Ivy".  STOP depositing cash into accounts provided for Mortgage Application.      

 

     Mistake #5:  Changing jobs prior to ... or after ... applying for a Mortgage without consulting with your Loan Officer (me).   

     Alert:  Even if it's a better or higher-paying job, avoid "Mortgage Approval-Ivy" by talking to your Loan Officer prior to making any change in employment.  That way your LO can advise you as to how to best proceed.

 

     The bottom line is this:  Don't subject yourself to any of these predicaments during your mortgage process.  Follow the advice of your Loan Officer from beginning to end.

 

     And should you have questions?  Contact your LO and ask them BEFORE you take any action. 

 

     It will keep "Mortgage Approval-Ivy" at bay ... and keep irritations from arising ...

 

* Hoping to Buy or Refinance a Home in New Lenox or elsewhere in the Chicagoland area? Contact me! I'll put my 40+ years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:

 
Gene Mundt
Mortgage Originator - nmls #216987 - IL Lic. 031.0006220 - WI Licensed
 
American Portfolio Mortgage Corp.
nmls #175656
 
Direct: 815.524.2280
Cell or Text: 708.921.6331
eFax: 815.524.2281


 

 

 

  

 Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender   

   Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender  

    

 

Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                 IL Lic. #031.0006220  -  WI License #216987                                                                                                    

NMLS #175656

 

Gene Mundt, Mortgage Originator,  40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking:  #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including:  The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 

 

Your Referrals & Testimonials are Always Greatly Appreciated! 

 

Email Me .. to be added to my Mortgage & Real Estate Newsletter

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Rainmaker
2,732,995
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce - Short Sale

Great cautions to be heeded when mortgage consideratins are in the air ! 

May 15, 2018 02:59 AM #1
Rainmaker
3,549,307
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I tell my buyers that if they are getting monies from anyone that they shold have it in the bank at east a couple of month ahead of time

May 15, 2018 03:51 AM #2
Rainmaker
4,197,490
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Excellent re-blog, Roy.  Buyers would be well served by reading and following this advice from Gene.

May 15, 2018 04:23 AM #3
Rainmaker
4,552,751
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Please be sure to leave comments at the original blog by Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

May 15, 2018 04:25 AM #4
Rainmaker
3,481,654
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Love your choice for this reblog, and a great story from Gene.  Not sure if I have ever seen poison ivy.

May 15, 2018 07:24 AM #5
Rainmaker
3,954,205
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I love the post. I will share it with others. Thank you for reblogging 

May 15, 2018 07:32 AM #6
Rainmaker
4,552,751
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Your feedback is always welcome and is very much appreciated.

May 15, 2018 08:11 AM #7
Rainmaker
4,552,751
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

May 16, 2018 04:43 AM #9
Rainmaker
4,552,751
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs
Gaithersburg Book Festival   #GBF
Saturday, May 19
10 a.m. - 6 p.m.
City Hall Grounds
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All author presentations take place under tents.
 
 
Note that Summit Avenue from Hutton Street to Olde Towne Avenue will be closed from 8 a.m. to 8 p.m.on May 19 for this event.
 
The Gaithersburg Book Festival is an annual celebration of great books and great writing that has made its mark as one of the nation's top literary events. Admission, parking and accessible shuttle buses from Shady Grove Metro and Lakeforest Mall are FREE. Click here for information, follow on Twitter @GburgBookFest and watch C-SPAN Book TV, broadcasting live.
May 16, 2018 09:44 AM #10
Rainmaker
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Roy Kelley
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Farmers Markets Now Openfarmers
 
The City's two Farmers Markets are now in full swing. You'll find them on Main Street in the Kentlands on Saturdays from 9 a.m. to 2 p.m. and at the corner of Rt. 355 and Fulks Corner Avenue in Olde Towne on Thursdays from 12:30 to 6 p.m. They both feature an assortment of locally sourced eggs, meats and a variety of produce that changes weekly as crops reach maturity. The Main Street market also features prepared foods, potted plants, cut flowers, and items handmade by local artisans and crafters. Explore the markets here. Sign up for a weekly e-newsletter with featured produce and recipes.
May 18, 2018 10:42 AM #11
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