4 Deal Killers
1 Never move in the property early. A buyer purchased a home and since the seller know the buyer he allowed him to habitate early. The property was appraised and the lender noticed this situation and promptly denied the loan. The buyer was forced to obtain a non conforming loan with more money down, This was an additional 30000 down and a higher payment of 300 dollars. Do not move in until you close.
2 Know your credit history. A buyer entered into a contract and agreed to close within 30 days. When underwriting started working his file there were numerous slow pays. This could have been prevented with a pre approval. The buyer had to clean his credit and could not close within 30 days. The seller with numerous offers increased the purchase price by 40000 dollars. Do not agree to close without a preapproval in your hands. Very costly.
3 Know your DTI. When you apply for a morgtage detail your income. If your income is based upon bonus or commissions disclose the makeup. What happens is many borrowers fill out applications on line and fill out wages in totality. Once underwriters are alerted of bonus and commission income they deem the income not sustainable and turn down the mortgage. Usually this results in a loss of deposit and wasted fees. Know your DTI and disclose your source of income.
4 Closing the deal within 30 days. This is no longer an acceptable time frame to close a mortgage. With the new disclosures and paperwork now required it is an impossibility. Do not fall for the seller rushing you to close in 30 days. This is not possible any more and insist on 6 weeks.
These are a few examples which kill deals, get ahead and stay ahead.