Mary Beth H: Hi, this is Mary Beth Harrison with Dallas Native Voice. And I’m sitting here with our friend Mortgage Mark and I’m going to shoot you some, I’m just going to put you right on the spot today.
Mark: I’m on the hot seat.
Mary Beth H: Right. So here’s the question. What are some gotchas that you’re seeing when our buyers go to get a loan? What are some things that you wish they hadn’t, you wish they had? What are some things that we can kind of troubleshoot before we even get there? Okay, so what’s that?
Mark: Yeah, I would say first and foremost sooners better, right? So before they go and get a contract on a home, call somebody like a mortgage person to look what they’ve got. Because a lot of times, folks will try to be proactive so that they wish they hadn’t. A lot of times I wished they hadn’t tried to do it themselves.
Mary Beth H: Okay. So give me an example of one bad thing they might think was a good thing.
Mark: They might close credit cards, they might buy something, pay something off and close it. Doing so not for everybody, but in many instances, it can actually hurt your credit.
Mary Beth H: Wow. So if I think, because I have three Visa cards and I think really I only use one, I’ll close the other two. That becomes a negative.
Mark: It can be absolutely. Especially for those light on credit.
Mary Beth H: Wow. Okay. I would never have thought about that. And what’s something else that they can, I totally get the every buyer before they even think about buying a house, if that’s even in their mindset that they want to buy a house, they need to get to a lender first. And going to an online nobody is not the way to go. So it would be great if you got a referral from someone that you know who you’re talking to. Because one of the things I know you bring to the table, which I love, is that counseling of a buyer of, why would you put down 3%? Why would you put down 5%? Why save your money and don’t put down 20% so there’s reasons for everything as you go along. And I love that you counsel them through that. But yeah, if you don’t go to a lender first, one to find out how much you can afford because why would I show you a $300,000 house when 250’s where you needed to be. The $300,000 should look better. It’s $50,000 more. Right? So yeah. So just if nothing else, just to get a playing field of where you want to be is one. But two, you can help them through some of their credit issues.
Mark: Sure. Even credit aside, somebody may have the money to pay off a large amount of debt because they think I want to go in without this car loan, for example. It may behoove them to put more money down for down payment and not pay the car loan off. If you’ve got 30,000 maybe use it for that $300,000 down payment. And instead of 10% down, maybe they have 20. so again, the biggest thing I can tell them is just not only connect with a lender but connect with the lender before they do what they think is right. Because intentions are great. But at the end of the day, it’s all about results.
Mary Beth H: Good point. Ah, well, I hope that helps someone out there that’s thinking about buying a home. If you want more information, you can find us at dallasnative.com or any social media. Thanks so much.