As we move through 2023, economic news comes and goes. (Last week it was the employment data; this week it is the consumer price index numbers for April.) Politics comes and goes, and with that currently is the debt ceiling debacle. But there are certain things that are more constant, and some of those are advice that borrowers should receive, and listen to, while obtaining financing from an experienced broker for their home whether it is a purchase or a refinance.

Between your client’s accepted offer, or agreement to refinance, and loan closing, Orion’s brokers tell their borrowers not buy a “big-ticket” item such as a car, boat, or an expensive appliance or piece of furniture. The impact of such a move onone’s bank account, or credit card debt, has a negative impact on the home loan rate and pricing. Or approval. Along those lines, brokers warn clients not to open or close any lines of credit, e.g., credit cards.

Brokers tell borrowers to try their best not to quit or switch jobs. Orion and other reputable lenders are required to gauge the ability to repay the mortgage, and a steady income and overall stability is important. Your clients should paytheir bills on time, as a utility, credit card company, or other institution will record that late payment and it may impact credit. Speaking of which,don’t let someone run a credit check on your client without the client discussing it with you.

Borrowers shouldn’t ignore questions from their broker, nor should you ignore questions from your Orion AE. We’ll rarely call or email you just to “shoot the breeze,”and if there are questions about your client’s loan, or the processing, they need to be answered as soon as possible.

Borrowers shouldn’t make large deposits to their accounts outside of their paycheck. Orion’s, or any lender’s, underwriter will question them, wondering where the money came from, and it may delay a loan’s analysis and closing. Your clients shouldn’t cosign a loan with anyone, including family members. Adding debt totheir overall financial picture is a problem. Nor should they change banks or bank accounts, or take out any payday loans. Once again, these change the financial situation, and can easily delay or even terminate the loan.

To sumthings up, credit scores, namely FICO, are calculated using many different pieces of credit data in a credit report. This data is grouped into five categories: payment history (35%), amounts owed (30%), length of credit history(15%), new credit (10%), and credit mix (10%). All of the items noted above impact your client’s credit score. Certainly, if you have any questions, contact your Orion AE!

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