1. Cash back at closing, while not illegal they lender will usually reduce the mortgage by that amount.
2. Furniture included in the contract, lenders consider this to have a value and if it is zero then it needs to state that in writing. Better yet have the seller and buyer write it in a separate agreement.
3. Changes after the inspection will need to be addressed after the fact and any rebate will adjust the mortgage down usually.
4. Handy Man Special, this one sets off all kinds of alarms and usually means a full appraisal to see what shape the house is actually in at that time.
5. Anything that sounds like illegal activity has taken place on the property, grow op, meth den and lately we had one that had been the scene of a murder. All of these are considered to have an effect on the potential value.
6. Size of a property can affect the sale, houses under 700 sq ft have only a few lenders who will consider them.
7. The appraisal itself can set off a lot of red flags, signs of water damage or the house in disarray can lead lenders to back away. Especially in times when there are down turns in the market.
8. Change in employment during the process is never a good thing to have happen. This can actually cause the deal to stop.
9. Change in debt, better to not have any new debt show up as lender can check your credit again right up until the day of possession.
10. And last but not least the down payment needs to be in place at least ten days before possession and proven to the lender by ways of proof of savings.
At Dominion Lending Centres, we give you the advice you need to secure the right mortgage for your unique needs.