Five Things NOT to Do Before Refinancing or Buying Your Home

Five Things NOT to Do Before Refinancing or Buying Your Home
One of things my clients appreciate about me is that I act as a resource for them to answer questions long before we start the mortgage application process. Many times I prevent obstacles from getting in the way of securing their mortgages. Here’s a list of five things NOT to do before refinancing or buying a home.1. Retire. Although this may be your ultimate goal, you’ll want to secure the loan before significantly reducing your income. The amount of money you’re currently making has a direct impact on how the bank looks at your ability to pay your mortgage.

2. Slow Your Income Stream. As I just mentioned, slowing your income stream could adversely affect the terms of the mortgage or refinance you’re seeking. Cutting back from full-time to part-time hours can hurt your chances.

3. Experience a Major Life Event. Sending your kids off to college can set you back thousands of dollars. Taking on payments for your child’s tuition may set off red flags with banks.

4. Start a New Job or Career. Financial institutions like consistent, steady income from their customers. New jobs, career changes and new business ventures are all considered risks in the eyes of the bank. If you’re self-employed, you’ll need to show income for two years’ work before the bank will even look at your application.

5. Move Out and Rent Out Your Property. You may have thought that making your home a rental property would be a plus, given the potential income from tenants. There’s a problem with that theory: Investment rates are higher with more restrictions on a rental property than if it were your primary residence.

I take a holistic approach when it comes to buying or refinancing your home. After all my years in the mortgage industry, I know I can save you time and money. If you’re considering a new mortgage, call me at 617-965-1236. I’ll be happy to answer any questions you may have.

November’s Home Value Improver

Stand Up to Standing Water

I’m a firm believer in keeping water where it belongs: in the sink, the pipes, the toilet, etc. When water ventures beyond these places, it can become a hazard in your home.

Standing water in your basement may seem like it’s not a big problem, but it has the potential to affect your health. As water seeps into floorboards and walls, it can cause mold. Left untreated, mold spores can reproduce and grow everywhere water is (or was). This can lead to certain sicknesses, generally limited to respiratory infections.

The other problem is mosquitos. These stinging insects breed in pools of standing water. Adult females lay their eggs in the water, where they incubate for five days and then hatch. Watch for water buildup this winter. If it sits in your basement until spring, the mosquitos will view it as a great big breeding ground for their blood-sucking offspring.

Water can find its way into your home from clogged gutters and snow melting from ice dams. Keep a watchful eye on any water congregating where it shouldn’t. By removing it quickly and thoroughly, you’ll avoid mold and mosquito problems from turning your dream home into a nightmare.