Shockingly enough people still do the things that can cause themselves heart ache when buying a home. Here’s what you need to know plan on buying a home…
Your ability to buy a home rests on the numbers and documentation your mortgage lender has. If there is a change in any of these things, your chances to buy a home can be jeopardized and or negatively impacted. This means that when there is a change to your credit, debit, income assets, or job during the escrow process you might not be able to buy that house and you risk losing your earnest money. Avoid the following things when buying a home:
- Applying for credit – after you get a contract to buy house do not apply for any credit. This means do not apply for a car loan, a credit card, utility bill, a cell phone bill, or any form of credit whatsoever. Doing so could change your credit score and could impact your rate lock and/or your fees associated with closing on the house.
- Changing credit – closing out any credit cards and disputing credit cards can have negative consequences. If you have any accounts in dispute the mortgage lender cannot run automated underwriting, and they must pause your loan file until your accounts are taken out of dispute. If you close your credit card, that can hurt your credit score which turn can increase your fees jeopardizing your home purchase.
- Moving money around– keep all of your money in the same place. Don’t move money around. Moving money around can cause more headaches for yourself than necessary. If you are receiving a gift funds, the donor can wire the funds directly to escrow bypassing your bank account entirely. If any these funds happen to hit your primary checking out, that could spell more trouble as it could appear on paper as though you are spending your cash to close.
- Keep your job – changing jobs then getting into contract with the proper documentation is one thing. Signing a purchase contract then changing jobs is something else entirely as most mortgage banks typically want you on the job for at least 30 days. Some lenders will also want a pay stub at normal pay, an offer letter and a verification of employment prior to closing on the home. A word to the wise close on the house with the current job that you have.
- Hiring a moving company or purchasing furniture – hiring a moving company when you have not signed your final loan documents is just plain unnecessary and it sets you up for failure. If you have a moving company come on a certain day and for whatever reason your house doesn’t close on that certain day, things become problematic. Hire a moving company after you’ve signed final loan documents. Same goes for purchasing furniture especially if those funds for purchasing furniture come in the form of using credit or cash in the bank -close on the house first then spend. Short term gratification versus long-term value is not worth the risk.
By adhering to these steps after you sign purchase contract, you will be well on your way successfully closing escrow with little or no hiccups. Looking to buying a home? Get a free quote now.
