Between getting pre-approved and closing on a police home loan there should be no surprises in the process. That is definitely the case on our end at Police Mortgage.
We advise our clients that the same should be true with the first responders we have the privilege to serve. For example, after the pre-approval but before the closing our client buys a car. If we don’t know about that at pre-approval, and there is now a $500 auto-loan payment we have to account for, we probably won’t be able to close on the home. The closing falls through because of that surprise.
Why? Well, that can push our client over the debt-to-income ratios we need. Sorry, but we can no longer close. That has happened a few times.
When it comes to mortgages for police, being upfront about the details with your loan officer goes a long way. We want to know the price range they are looking for. Even if they are thinking about purchasing a car within a couple of months and then want to buy a property, I can work with that. Give me a heads up and I can advise you. I can calculate that in and then tell you how it effects a law enforcement house loan.
Your home loan is bigger than anything else. The house purchase is almost always the most important thing. You want to make sure that the home loan goes through before anything else.
Let’s close the home loan first. Then, let’s look at what you need to drive. Taking out a credit card to buy new furniture before the home closes is probably not a good idea either. Leave any other big purchases until after we close on the home.
Another common surprise for us that can throw a wrench into the works is a large cash deposit. For example, we get a contract, we’re working on getting the home loan approved and then the client tells us they have $10,000 more to put towards the down payment.
We need to see the source of the down payment. We need to see updated checking account or updated savings account statements. “Oh, I had $10,000 in a safe at home.” Well, that doesn’t cut it. Underwriters don’t allow that. We can’t count it. We can’t use that for a down payment. When large cash deposits cannot be sourced we can’t count that for the down payment.
We can accept gifts from families or friends. They can transfer money into a client’s account. It’s not about the fact that it’s a big deposit. It’s the fact that it’s cash and it cannot be sourced. We’re OK with you receiving $10,000 from your mother. That’s acceptable but we need to be able to verify the source.
Those are the big surprises – large purchases on credit before closing and large cash deposits that can’t be sourced. That’s why the pre-approval process is so important. We can advise you and discuss any weak points as they pertain to your specific need for a law enforcement house loan. But we need to see the full picture without any surprises.
Police Mortgage specializes in conventional mortgages, purchase money transactions, FHA loans, and VA loans. Led by founder and CEO John Aretos, Police Mortgage is known and respected for providing clients with exceptional service, customized terms, quick and easy closings, and low money down options. To learn more about Police Mortgage, call 312-499-8878.
Police Mortgage for First Responders Who Are Second to None.
