Pitfalls to avoid during the mortgage process, with special guest Diane Scabilloni

Pitfalls to avoid during the mortgage process, with special guest Diane Scabilloni

– Today, we're talking
about avoiding problems in the mortgage process with our special guest, Diane Scabilloni. (lively music) Hey, everyone! It's Shelley Killinger here with The Shelley Killinger
Group at Re/Max CSI. So today, I have with
me a very special guest, Diane Scabilloni from Victorian Finance. Welcome, Diane! It's so
nice to have you here! – Oh, thanks for having me! This is great! – Absolutely! So today, we're gonna talk
about potential pitfalls in the mortgage process
and what our viewers can do to avoid them but before
we dive into all of that, I'd love for you just to take a moment and tell them in case they
don't know who you are where are you from, how long
have you been in the business, that kind of thing. – Okay, awesome! Yeah! I am originally from Pittsburgh.
I grew up in McKeesport. I now live in Bethel Park with my husband and two teenage boys and a puppy, Zeke.

– I love Zeke.
– They keep me hopping. I've been a mortgage lender for many years and I've helped over 3,000 people with their mortgage financing.
– Oh, that's awesome! Congrats! – Yeah, yeah.
– That's awesome. – I love what I do and
every client is different and I love working with
great people like you. – Oh, well thank you. We absolutely love working with you too. Let's talk a little bit
about our topic for today. It's common unfortunately
to hear stories about the home purchases moving along smoothly and then all of a sudden,
something comes up and there's a delay or perhaps the mortgage doesn't close at all but most buyers, I don't think realize is that a lot of those pitfalls, a lot of those problem areas
and delays could be avoided. So you brought to us
today three common reasons why people have problems
with their mortgage process. So what's the first reason? – Yeah, sure! Well let me first say that what I do is I give borrowers a to-do
list and also a not to-do list.

So hopefully, they're not
going to make any changes once they've been pre-approved so we hope to avoid those
challenges if we can but to answer your question, because sometimes clients
act and think later, a big one is taking on additional debt after they've been pre-approved. – Right, taking on new
debt. That is a big one. But let's expand upon that
just a little bit more. What type of debt specifically
are we talking about? – Yep, yep. Alright, so when I do a preapproval, I'm very thorough to
take their current debt from their credit report. I take that into account to see how much of a mortgage
they can qualify for. – Absolutely. – So if someone is looking for a house and then all of a sudden,
they decide to buy a car, that car payment is not calculated in to how much of a mortgage
they can qualify for even if they just take
out a new credit card debt because they get free 10% at the register and maybe they're like, "Oh my monthly payments
are only gonna be $50." That $50 a month impacts how
much of a house they can buy.

– Absolutely. And even just $20 to $50 can
make that big of an impact. – Absolutely.
– Wow. And definitely buying a car in the middle of a real estate
purchase is not a good idea. – No.
– No. Okay, so we're talking
about three common reasons why people have problems
with their mortgage process and number one was taking on new debt. What's reason number two? – Alright. The second reason is keeping secrets from your mortgage lender.
– [Shelley] Oh my goodness. – Like thinking that I don't
need to know certain things coz we go over a lot of
details of their financing and sometimes, people are
maybe a little bit shy but the fact that you pay child support or you plan to change a job
or they guess on their income without really reviewing their pay stubs and their tax returns or they don't share the information of where their money is coming from and it's all cash saved at home which is a problem in lending.

We need to be able to verify their assets. – Oh, absolutely. And I laughed but we
really have seen people with cash under a mattress
to close on their home and that's definitely not a good thing but I guess the question would be so how do they know what they don't know? How do they know what information they need to share with you? – Okay. Okay good. Well, when customers
apply for the preapproval, I will go over their income, employment, how much money they had
saved for the down payments and the closing costs and like I said, we will pull their credit and if they're going to
make a financial decision that impacts any of those areas, we really need to have
a conversation about it.

– Absolutely, and that makes total sense. An example could be maybe
assuming that their bonus counts as income and not
reporting that to you. – That's a good example, yeah. We really can use bonus income
for qualifying for a mortgage as long as they have at least two years history of receiving it and if their employer indicates, oh yeah, we give that all the time. If their employer doesn't
verify that it's consistent or maybe they seem to be on a track of making less bonus every
year, then most likely, we're not gonna be able to
use that for qualifying. Sometimes, clients
overestimate or underestimate and that's why it's really a good idea to collect documentation
early in the process so we can review their paperwork and just be certain of the
strength of their pre-approval. – Oh absolutely. And I do just want to pause
here and mention something. If you guys are getting the impression that the mortgage process is complicated, you are absolutely right.

It can be complex which is
why it's such a good idea to talk to the mortgage
lender early in the process and talk often during the process. The lender is gonna do
their best to forewarn you about potential pitfalls but I would say, don't be afraid to call with questions. Maybe a question such as I'm thinking about
making this big purchase or I'm thinking about depositing
this large amount of cash. How will this impact my loan? It really will help save you a lot of headache in the long run. – That's so true, Shelly. That's why I enjoy working with real estate professionals like you that help their clients to
make good lending decisions and are always, those are the ones that have the most
success and happy clients.

buying a home

You can use any bank or
the realtors that say, "Hey, you can use any bank that you want." but aren't giving them
any kind of direction on making sure that the client
stays on the right track so you do a great job.
– Absolutely. Oh, well thank you. We love to send our customers to someone who we know is going to get the job done with this least amount of worry or as little as worry
and problem as possible.

So we've talked about
reasons number one and two so what is the third reason
that people may have problems with their mortgage? – Yeah, probably the third one that I see happen the most
often is a job change. Some clients think that
once we verify their income and their employment that they're free to just change jobs before closing. That's really not true. We verify that a client is still working at their same position up
until the day of closing. Now sometimes, things can happen and someone may get this amazing job offer that they really don't wanna pass up, typically, we can work
with clients on this if we have a lot of notice. They just need to communicate with us and like you had mentioned before, so that we can help them to navigate like how do we need to kinda
jump and make some changes and the biggest detriment is
if they quit a salary position and then let's say they start a business or they're working for the corporation, now all of the sudden, they're
the owner of the corporation.

That is a tough one to overcome so if your plan is to
do any of those changes, please make sure that you
have conversations with us. – Right, and it always
just seems to come back to letting the lender know if
there's going to be a change, if you know about a change in advance and that is a big one
and I can imagine why.

I can imagine that most
people would understand why losing a job would
not make them eligible for mortgage financing. That makes total sense but
what if they got promoted or what if they got a better job? – That's good!
– Yeah. – Promotions or moving
within the same company, those things are all
fine and that reflects a sense of stability and security. It's when they change companies or they become self-employed. That's when we need to like regroup. It doesn't mean suddenly
they can't get a mortgage. We just need to regroup
and review some things. – So it may take some
extra time essentially. – [Diane] Exactly. – [Shelley] Then that makes total sense. So what do you think the big takeaway is here for our viewers? – I would say the
biggest takeaway would be to have a trusting
relationship with your lender. – Yeah, absolutely. – They are going to know all about your personal financial information and so their goal is to help you to buy a house so during the home process, please reach out to notify
them of any changes.

Family wants to give you a gift perhaps to help with the down
payment or you get a raise or you have a big vacation planned and you need to pay that credit card bill or something like that. Tell them anything like this so that they can help
you navigate the process. Mortgage lenders investigate everything so if you think they
won't find out, they will. – Yeah, you're right.

– It's not a big deal and ask the questions
and tell the information. It's again, about communication
and we all want it to be a successful transaction and I think of it like a triangle. You, and me, and the clients
and it's just the goal is to help them to buy their dream house. – Absolutely. Oh, I love that. Well there you have it, guys. The three common reasons
why people have problems in the mortgage process and what you can do to avoid them. Diane, thank you so so much again for taking time out of your busy day to share your knowledge with our viewers. Where can they find you if
they want to reach out to you? – Well I have a Facebook business page and that's Diane
Scabilloni Mortgage Lender or if they wanna email me
with any personal questions, it's Diane, D-I-A-N-E,
@VictorianFinance.com. – Oh, that's awesome! Well thank you again and guys, I am so excited to hear your comments. Please post them down below
and give us some thumbs up, likes and hearts if you like
the content of this video.

Don't forget to subscribe
so you don't miss out on any of our weekly real estate videos. Thank you so much for watching
and we'll see you next time..

As found on YouTube

Looking to see what kind of mortgage you can get? Click here to see

Leave a reply

Your email address will not be published. Required fields are marked *