November 12th, 2021 11:06 AM by Holly Ecimovic
During the home buying process, there are some things you want to stay away from in order to have everything go smoothly from the time when you initiate the loan, until closing.
Here are some tips to help you have a stress-free home buying experience:
Don't empty your wallet on big-ticket items
You may be itching to turn your new kitchen into a home magazine cover, or celebrate your new dream home, but stay away from expensive purchases like furniture, jewelry, appliances, or vacations until closing. Your credit numbers could be altered suddenly if you make a huge purchase using credit cards. Since lenders are reviewing your financial accounts, a large cash purchase is also a mistake.
Don't get a new career (Hear us out!)
Stability in your work history is a positive thing to banks and other lenders. Changing jobs may not affect your ability to qualify for a loan - particularly if you are getting a better salary. But in some cases, changing jobs during the loan approval process might raise concern and stymie your application.
Don't switch banks or move cash around in your accounts
Your lending institution will require you to submit recent bank statements of accounts in your name: savings, checking, money market, and other assets. To eliminate fraud, lenders need clear documentation of how you earn your living and where additional money comes from. Switching banks or transferring finances elsewhere - even if it's just to pool funds - could make it harder for the lender to review your funds.
Don't give cash directly to your seller (commonly in cases of "for sale by owner") to be used as a "good faith" deposit
Until the sale is complete, any earnest money actually belongs to you. Some FSBO sellers might not realize that any good faith funds must be used for your expenses upon closing. It's best to put the funds into a trust account, or get a neutral person, like an attorney to hold them until the closing of the sale. Should your home purchase fail, your purchase agreement should document to whom the good faith funds should go.
Start your loan process today with us!
Head to https://www.contemporarymortgage.com/applynow to fill out our secure online loan application.