Home > Blogs > Georgia > Cherokee County > Ball Ground > Are you planning on purchasing a home or refinancing? 
59,034 views

John Reinhardt Greater Atlanta & Surrounding Suburbs' Blog

By John J. Reinhardt | Agent in Johns Creek, GA

Are you planning on purchasing a home or refinancing?

Are you planning on purchasing a home or refinancing? Here are the triggers that may cause the most lender scrutiny of loan applications, according to a recent article at The New York Times: 

  • Large deposits of money. Lenders are required to account for any cash gifts for down payments, such as from relatives. So if a borrower earns $5,000 a month and suddenly deposits an extra $10,000 beyond that, lenders may question where the money came from when applying for a loan. 
  • The home’s new address. Buyers who are purchasing a primary home three hours from where they work may also draw increased scrutiny from lenders, according to The New York Times article. Borrowers may even need a letter from their employer stating that they work from home a few times a week. That’s because lenders may want to ensure the borrower plans to be an owner-occupant and not buying the property to rent or flip, which must be disclosed.
  • Signing up for new credit cards. Borrowers should avoid taking on extra debt when applying for a loan — so they may want to wait to buy all the new furniture. Extra debt can be a red flag to a lender and could even jeopardize closing on a new home if the debt pushes the borrower’s total debt levels beyond lender-accepted limits. Source: The New York Times

John Reinhardt

Solid Source Realty

REALTOR

  My Website

 T  (678) 310-9811



 
Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer