Hey guys, uh, good afternoon, Angelo Christian Financial. Thank you so much for watching our podcast, Real Estate Insider. I've got a fun one for you today: things that you should not tell your mortgage lender when you're getting a home loan. And you're going to wonder, "Hey, why is Angelo saying there are things you should actually hide from your mortgage lender?" No, I'm saying, you know, when you're getting a home loan, you want to be very transparent, you want to be honest. You don't want to hide anything or be deceitful, but obviously, when you're buying real estate, it's a major transaction. Uh, how many of you guys out there ever tried to buy a home before and you were really taken aback or aside by all the questions that your loan officer is asking you?

You know, there are some things when you're getting a home loan that you don't want to disclose, you don't want to discuss, or actually do, because you can actually jeopardize the transaction or affect yourself from getting approved for the home loan. So, I'm going to talk about these things today. It's very, very important that you pay attention if you're trying to get a home loan. There are things that you do want to disclose, and there are things that you don't want to disclose. Obviously, you want to be honest, be truthful when you're getting your home loan, be very upfront, so that way the lender can properly assess your situation and diagnose the best type of loan program for you, what you need.

But there are some things out there that I think are important that you don't want to share, or you want to be careful the way that you word it or script it to your loan officer. So here they go. So the things that you should not tell your mortgage lender, in the order of top-down priority:

  1. One of the things I hate to hear when I'm talking to a client, they say, "Hey, well, Angelo, I'm still trying to figure out my down payment. I don't know where I'm going to get my money from." Lenders don't like to hear that, guys. You've got to have a plan for your down payment, all right? So if you come to a lender and you got to do an FHA loan, you got to put three and a half percent down, have a plan for where that money is going to come from. "I don't know where I'm going to get that from, my Uncle Johnny, or I'm just going to pull that out of my 401k." You have to have a plan to let the lender know where's that money going to come from. Because if you tell them, "I don't know, I don't got the money, I ain't got no money," then they're not going to take you seriously, they're not going to want to work with you, okay? So don't let a lender lead on to think that you don't have the money for closing. People don't like to hear that. Then they're going to, because a lender is trying to figure out how they can close you and get the loan approved for you. If you have to put 20 percent down for conventional, explain to them where the money is going to come from, right?
  2. You know, this is a funny one. I always, I get this all the time. Um, a lot of people are like, "Hey, don't tell my spouse what's actually on my credit report." They don't want their spouse to know what's actually on their credit because if they see it, they might freak out. I had one of my clients, he had, uh, he was, you know, he was an attorney, and he had all these different accounts with like Jared's and all these different, um, these, you know, the ring company, Brothers Go, uh, I forgot the name of the company, there's Jared, he had one with Diamond Brothers. Anyway, he didn't want his spouse to see that because he was cheating on his wife with some other women, and so he is, and he didn't want his wife to know about it. So if you're telling a lender you don't want them to know what your spouse has on your credit, it could be something that's shocking or scary because maybe you have a lot of debt and the loan won't get approved. So, that's something that you definitely don't want to let on to your lender. Let them know, especially if you're in a community property state, like in Texas. If you're getting a mortgage in Texas, we have to pull the credit on both spouses. So even if your wife's not going on the loan, you're doing an FHA loan, for example, or a VA loan, or a USDA loan, we have to pull the credit on both spouses, even if there's only one spouse going on the loan. But I thought this is a funny one. I hear this all the time, "Hey, Angelo, don't tell my wife what's on my credit report. I don't want her to find out about it." So don't let your lender lead onto that or think that because then they're going to think that something fishy is going on, and they don't like to hear that type of thing.
  3. Number three, I hate to get this, and you know, and I hear this sometimes from clients, not really so much more, but if you're talking to a lender like this, "Hey man, I'm shopping you with five other lenders. What's your rate, buddy?" That's an immediate turn-off to a lender. If you're shopping them with five other lenders and you're like, "Hey, what's your rate, man?" People don't like to be talked to like that, okay? And if you're, it's okay to shop for a loan, there's nothing wrong with shopping for a loan, but if you're acting like that up front, someone's not gonna work hard for you and put all this effort and service into helping you to try to get your loan approved if you're out there shotgun your deal all over the city and try to find the cheapest rate. You know, that's not really, you know, the best way on how to do business. There's nothing wrong with shopping for a loan, but I think being diplomatic and having the proper discourse to be able to discuss that with somebody is very, very important.
  4. Number four, uh, this is a no-no right here, and I hear this sometimes from clients, "Hey, I can't wait to get that money back from the seller. What do you promise me?" Okay, when you're doing a real estate transaction, everything has to be put on the contract. You can't have any side deals with a seller. "Hey, the seller's going to kick me back five thousand. Hey, the seller's gonna give me a hot tub after closing." All that stuff, you can't be talking to a lender like that because it has to show up in the contract. If the seller's paying your closing costs, it has to be in the contract. If he's giving you the hot tub, it has to be in the contract. If he's giving you the lawnmower, it has to be on the contract. You just can't say all this stuff, "Hey, he's going to throw that back to me after closing." You can't talk to a lender like that, okay? That's a big, big no-no.
  5. This right here is another turn-off right here. If you're telling a lender, "I can't believe how much work this house needs." Lenders don't want to fund properties, guys, that need a lot of repair. So if you're sitting here telling the lender, "Hey, it needs $50,000 worth of work," I promise you, the first thing that lender's thinking is, "I don't want to touch this deal." Okay? So if you're telling a lender, "Oh, it needs all this work," let's just wait until the appraisal comes back, let's wait until we get the inspection, and let's see what that says. If you're sitting here already telling a lender, "Man, this thing is a dump, it needs all this work," he's not going to want to go to work for you and try to get the loan approved because he thinks it's not going to fund. Lenders don't like to fund properties that need a lot of rehab. So it's a big turnoff.

These are the five main things that I see that people tell the lenders and why their loan gets denied or why their lender doesn't return their call or doesn't want to do business with them, okay? So these are five important things that you definitely don't want to let your lender know, um, because if you do, he's probably not going to want to do business with you.

So really important thing, great video. I hope you guys got good value out of this. Remember, we are a nationwide lender. We've been lending in America for over 20 years. We do commercial and residential nationwide for over 20 years, guys. That's where America goes for funding. If we can help you with anything to get you pre-approved, you can actually call or text us from 9:00 a.m to 9:00 p.m. It's 832-431-6331. It's where America goes for funding, guys. For the last 20 years, we funded billions of loans.

https://www.youtube.com/watch?v=C-JpVOrXrAs&list=WL&index=9

  1. Introduction
  2. Key Points to Consider When Communicating with Lenders
  3. Things Not to Disclose or Discuss
    1. Uncertainty about Down Payment
      • Avoid indicating uncertainty about sourcing down payment funds
      • Lenders prefer applicants with a clear, planned source for their down payment
    2. Credit Report Details to Spouse
      • Be cautious when discussing the contents of your credit report, especially in community property states where both spouses' credit may be reviewed
      • Example: A client not wanting their spouse to know about specific debts
    3. Shopping Around with Multiple Lenders
      • Discouraged to overtly mention that you are shopping around with several lenders
      • Advised to be diplomatic in discussing loan comparisons
    4. Side Deals with Sellers
      • All agreements with sellers, such as seller concessions, must be officially documented
      • Informal agreements or expectations of post-closing perks from the seller are frowned upon
    5. Property’s Condition and Repair Needs
      • Avoid commenting negatively on the property’s condition or needed repairs before inspection and appraisal
      • Lenders may be hesitant to fund properties requiring extensive rehabilitation
  4. Conclusion and Additional Information
  5. Call to Action