The art of the deal and the completion of mortgage loans in Tampa have been plagued by hiccups for what seems like decades now. Does anyone really remember a simpler time when homes were bought and sold with gleeful ease?
Even the seemingly almighty loan pre-approvals appear suspect these days. At one time, a mortgage pre-approval was license to buy; today there’s always the possibly that license can get revoked.
While there are specific activities from which a borrower must refrain after having the initial credit evaluation conducted, you need to be mindful that it doesn’t mean your real estate deal will proceed with a hitch.
At the risk of sounding ominous, there are variables in any transaction (appraisal, inspection process, title stuff) that can blow up a deal; but these are things that you really can’t control.
What you can control is making sure the picture you are presenting to your Florida mortgage lender is forthright so the pre-approval holds all the weight that it can.
- Make sure that your pre-approval is based on your actual taxable income; not things like sporadic overtime and the write-offs you claim from selling used auto parts on Ebay. The inflated number may be good enough for a pre-approval, but the underwriter is going to get the info straight from the IRS and we know they don’t mess around.
- Since your credit will probably be re-run after 90 days, you also want to make sure that you do nothing that could cause any additional queries that will impact a perhaps borderline score that may place you on wrong side of the approval tracks.
- Be sure you have solid documentation and a clear paper trail that provides evidence of where all your closing costs, down payment, etc. are coming from. Don’t walk out of your mortgage lender’s office with a false sense of security; it will be short-lived. You’ve got an underwriter in your future and they need to be fed a whole bunch of paper to be satisfied.
At the end of the day, make sure you have that stack of paper ready to support that piece of paper that bears your pre-approval status, or you may as well line a bird cage with it.