With every pre-approval letter, we also include what we call our “Don’t List.” These are suggested actions to avoid to ensure borrowers remain qualified. These actions do not always kill deals, but they definitely have the potential.
JVM’s “Don’t List:”
1. Do NOT make large deposits that cannot be explained. All “large deposits” must be explained
and/or “paper-trailed.” Deposits as small as $500 that are from mattress money,
untraceable foreign bank accounts, or cash payments of any kind can render an entire bank
account invalid and unusable for qualifying. If you need to make large deposits that are
difficult to “paper-trail”, contact us for “coaching” or advice. Keep a paper-trail for every
large deposit you make.
2. Do NOT take on new debt. If you increase credit card balances or finance a vehicle, your
debt ratios will be adversely impacted, reducing your maximum purchase price.
3. Do NOT take days off if paid “hourly.” If your debt ratios are “tight,” even a single day off
work can push you out of your qualifying range.
4. Do NOT get a job in a “different field.” A job change in the same field is OK, as long as the
compensation is the same or higher. A job in a completely different field will require six
months or more of seasoning.
5. Do NOT liquidate assets. This seems obvious, but we often need those assets for approvals.
So please hold off on major repairs and purchases.
6. Do NOT miss payments on any debts reporting on a credit report. This is obvious; missing any
payments on your credit report will sharply reduce your credit score and your qualifying
ability.
7. Do NOT co-sign for someone else’s debts. Even if you are just a “co-signer”, the debt will still
show up on your credit report. You will be responsible for that debt and the payments (until
we can show twelve canceled checks from the person making payments, usually).
8. Do NOT file taxes with a tax liability owing, or with less income than in previous years. File
extensions instead. If you intend to file taxes between now and your purchase date, consult
with us if your debt ratios are considered “high” or “tight.”
Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646
