“What if…” FAQs
“What if…” questions have kept the human race alive and going for millennia.
Sometimes those “what if…” questions lead us down a road of doom and gloom.
But what if it’s amazing?! What if it’s better than you imagined?!
As always, we’re here for you!
What if I get a new job?
New jobs can be SO exciting! New jobs, current jobs & old jobs are all part of underwriting & approval.
Ideally you speak with your loan officer about any possible job changes, a little planning goes a long way.
W2 jobs in the same industry or profession usually have a smooth transition with no issues for underwriting.
However, if your position is based on commission, a bonus, or self-employed job changes, those need to be reviewed completely.
Frequent job changes can also be an issue, and something to keep in mind. Underwriting is designed to prove that each borrower is going to be a successful home owner.
The more consistency & stability that can be shown, the easier it is to underwrite and approve.
As always, keep your mortgage lender up-to-date with even the potential of changes. The more we know, the simpler it can be to work around.
What if I lose my job during the mortgage process?
This is never fun, but making sure you have a savings account prepped & ready will help make a surprise job loss easier to work through.
Loan underwriting requires that you have current and consistent income for approval, so getting a new job quickly will help keep you from having a large job gap.
What if I get married during the mortgage journey?
Congratulations!! Getting married is an easy change, if no name changes occur.
With a name change, the person changing their name will need to get that processed quickly as the loan application will need to have all details match across documents.
What if I get an inheritance?
An inheritance can be used for loan approval as long as the paperwork showing the trail of funds can be provided and validated.
Actually, most assets can be used, as long as they can be sourced and verified as not borrowed funds.
Borrowed funds need to be verified, added to the debt list and validated that they are from an acceptable source (per government & program guidelines…which can be different from loan type to loan type. Example: FHA doesn’t consider an auto loan secured, but Conventional does).
What if I’ve previously gone through a foreclosure?
A foreclosure doesn't mean you can’t buy a home, however it does mean there are more details that need to be tackled. Time is the largest factor when it comes to buying a home after a foreclosure, usually two years or more depending on the loan type.
The time starts based on the deed filing date, which is often much later than when the homeowner thinks the foreclosure happened.
It’s best to connect with a mortgage lender early to know exactly when buying a home will be possible and to map a plan of action for financial confidence.
What if I need to buy a new car during the mortgage process?
New cars are a big deal when buying a new home because it’s essentially a new debt and a hard credit inquiry. Underwriting reviews and validates all income and debts before approving mortgage applications.
New cars tend to have higher payments and thus need to be included and verified. Knowing your budget and working with your loan officer is key to make sure that you don’t over commit yourself with a new car or any new debt (furniture, etc.
New debts could make your overall debt vs income ratio higher than your pre-approval was based on, which could negatively impact the loan closing timeline. Nobody wants that for you.
So before even going to a car lot, check in with your lender to see how it could impact your mortgage application.
What if I find a house that needs repairs?
Projects to make a house your own can be AWESOME!
At that point, ensuring you’ll have the budget or additional funds available to borrow is the key to doing those projects sooner rather than later.
Good news is, there are several ways to purchase a home and make sure money is available for projects. Prepping this type of loan pre-approval will be the key to making your fixer-upper home purchase a success.
You can plan ahead and budget for more than you expect to help avoid as many stresses as possible when you start the remodel or update projects.
What if random expenses come up? (medical bills, collections, etc.)
It’s key to keep your bills on time and in good standing, especially during the mortgage process.
If there’s a random change or a new collection shows up on your credit, your score can drop quickly, thus impacting your loan approval.
Monitor your credit and review your mail in order to avoid any surprises as much as possible.
Sometimes vendors having old addresses can be an issue, so be sure to keep your address correct at any/all places when you move.
What if I need extra cash?
Extra cash is a great way to help make sure you are financially safe, stable, and savvy with your new home or existing home remodel and projects.
It is best to review your budget to see where you can save money by cutting unneeded expenses.
From there, we can review what options are available to borrow funds beyond just saving.
There are LOTS of great options to borrow money while keeping your budget in line.
What if I need to buy furniture or appliances?
Please, please, please hold off any furniture or appliance purchases until the day after your new home closing takes place.
If you must buy something before, it is key to talk with your mortgage lender to coordinate where those funds will be coming from.
The last thing you want is to have a fantastic new set of furniture with no house to put it in.
What if I want to get into investment properties?
Becoming a new landlord or growing your rental property portfolio can be a great thing!
There are several different ways to purchase investment properties.
The first step is to set up a time to review your goals, finances & options with a qualified mortgage lender.
Investment properties require more down payment (minimum 15% typically) and you need to have reserves ready for surprise expenses and/or loss of rents when tenants don’t pay timely.
What if I have a lower credit score?
There are lots of loans that are available to lower credit scores. However, we help many of our customers improve their credit.
We know the ins & outs of credit so we can help explain how it works…making it less frustrating and stressful.
What if I’m getting a financial gift?
Gifts can be great!
Make sure to connect with your mortgage lender to talk through who you are getting it from, how it will be received and when in the process you are getting it and needing it.
What if I’m going on vacation during the mortgage process?
Can we come with you?! (Only kinda kidding.)
We want you to fully enjoy your vacation so be sure to communicate with your lender ahead of time letting them know when you’ll be gone and how to get in touch with you.
We’ll let you know if there are any bigger things to address before you go.
As with most things, as long as you tell us ahead of time, we can work around your schedule.
How are gifts different from money in the bank?
Any money deposited (within the last 60 days) that isn’t your payroll needs to be explained.
Once funds are in your account for more than 2 statement cycles (roughly 60 days) then it has seasoned enough to be considered your funds.
As with most things that impact your financial situation during the mortgage process, it’s important to communicate with your lender so they can help guide you through a best course of action.
What if I have more questions or want to connect with Team Chedester directly?
We would LOVE to connect with you to review your specific questions and your unique situation.
What if my employer is changing HR companies?
This happens more than you would think.
Whenever we have payroll or HR changes, it is helpful to have the last couple paystubs from the old system as well as the first couple from the new system.
Between copies of items you have access to and working with your manager or HR, we’ll get it figured out!