2. Sellers try to do the same. They decrease the penetration of the marketing of their home and deteriorate potential profits. They do not price their home correctly and miss out on profits, or price the home too high and waste valuable time.
3. Borrower assumes that since most of the required documentation has been given to the lender, loan processing can continue normally. Many times a borrower is unaware that lenders are under strict document guidelines and loans cannot be approved without all the required documentation.
4. Borrower hears reports about interest rates going up or down and tries to anticipate interest rate movement. By the time the news is announced, the markets have already adjusted and/or changed again. Today the markets are extremely efficient.
5. Borrower writes a contract before a professional loan qualification analysis. Quite often a borrower cannot qualify for a loan to purchase the home and the deal is cancelled.
6. Seller fails to secure written opinion from the professional lender as to the qualification of the buyer. The transaction may fall through because the borrowers cannot qualify and other potential buyers may be lost.
7. Borrowers shop for a loan exclusively by rates, ignoring other fees, references, reputation, and track record of the lender. Junk fees add to the overall cost of a loan and missing a closing date through a botched loan can cost hundreds of dollars. Some have even found themselves without a home when a loan falls through at the last minute. Rates matter very little if the loan cannot be delivered as promised.
8. Borrower contracts for more than the loan pre-qualification amount. Upgrades and "just a little more house" can disqualify a borrower.
9. Sellers do not evaluate closing costs associated for government loans until they get to the closing table. When a seller accepts a VA or FHA contract, associated closing costs the seller must pay need to be factored in.
10. Buyers receive gift funds or sell assets without documentation required to trace them. All loans require that funds being used for the transaction must be on deposit for at least 90 days or an acceptable source be documented.
