Loans, by nature are like time bombs. They seem to be designed to fall apart. At Centerpointe Lending, we try very hard to structure your loan in a manner that the investor will approve with little friction. However, there are a few things that a borrower needs to know about to ensure a fast and easy escrow. Here's a few:

• DO NOT allow anyone other than Centerpointe Lending to run your credit! By allowing your credit to be ran, credit reporting agencies debit your credit score normally 8-10 points each time its ran. It's called an enquiry and investors don't like to see a bunch of enquiries during the loan process. It makes them concerned that you are applying for more credit/debt. Until your loan closes, remember; don't let anyone run your credit without first consulting with your Loan Officer.
• Continue to pay your bills! Some folks think that because they are going to pay off their debt once the loan funds that they don't have to continue paying those creditors on time. Do NOT make that mistake. You must continue paying your bills and you must pay them on time. Most investors run your credit right before funding just to see if you have went out and obtained more credit/debt. It's not uncommon for that to kill a loan, so be sure to keep your payments going until your loan has funded.
• DO NOT make any major purchases. A mortgage loan is heavily based upton your ability to repay the debt. If you qualify initially and go out in the middle of escrow and buy something sizeable, it quite often sets your "income to debt ratio" out of the investors range, subsequently destroying your loan. Always consult with your Loan Officer if you have any questions or need to purchase something sizeable.
• DO NOT charge up your credit cards. Remember, your loan is heavily based on your "Income to Debt Ratio" and the more you charge on your credit cards, the more your monthly payments are. Many folks go out and start buying stuff on their credit cards, thinking that they will pay the cards off once their refinance funds. Remember, the investors will re-run your credit just prior to funding. If you have charged up your credit cards, it may set your ratios to high for the investor, forcing the investor to decile your loan.
• Know your budget. A major misconception is that the bank will tell you how much of a home or loan you can afford. The bank will look at your income and your debt and approve you for a certain dollar amount based on that information. Just because a bank may approve you for a $450,000 loan doesn't mean that you can afford the monthly payments. Use your own budgeting system to determine if that payment will be affordable for you every month. If your mortgage payment will leave you broke, consider downsizing the loan amount to something that will leave you some breathing room. Remember, a home should improve your quality of life, not leave you flat broke. With inclusive Loan Officers/Real Estate Agent, we can find the loan amount and the home that is affordable for you. A home that is foreclosed on is no benefit to anyone.
• DO NOT change employment status once the loan process has started. Banks must know that you are capable of repaying the loan. If you quit or change employers, you very well may undermine the success of your loan. A promotion in the same company is not a problem, as long as you do not transition from a wage earning position to a commission based position. If ever a question, simply consult with your Loan Officer.
• Try to always remember that a Loan Officer/Real Estate Agent cannot do their job without your help. Several times throughout the process, we will need to speak to you and ask you for additional documentation. It's very important that you work with your Loan Officer/Real Estate Agent, not against them. If they ask you for a document, remember that they need it immediately. If you move slowly, so will your loan. A slow moving loan may force your Loan Officer to extent your rate lock and that costs you money!

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