5 Ways to Derail Your Home Purchase
Time and time again, I have clients who have lender issues during the home buying process. Especially if you are a first time buyer, sometimes you do things that don’t occur to you may be an issue. Take a look at this list, and keep these things in mind.
Don’t Apply For New Credit - Any credit. No new furniture. No home improvement credit cards. Don’t do it. This has an effect on your debt to income ratio and your credit and can raise red flags with the lender.
On The Same Note - Don’t get excited and buy a new TV, or that new bed or furniture you wanted even with the money you have in your account. Lenders need to see you have a certain amount of funds in your account to close, and sometimes not just the funds you need to close, but extra funds. Don’t spend your savings. Be patient and buy that stuff after closing. And don’t buy a new car. I’ve had clients do this and it can be catastrophic to the loan process, and irreversible.
For The Love of The Home Gods - Don’t quit your job, or accept a new job during the process, unless you first discuss it with your lender. This is a huge no-no and can cause loan denial.
Don’t Play Games With Your Money - Don’t move money around in your accounts. Lenders need a paper trail. They don’t want to have to track down those transfers from account to account. And you don’t want to have to provide a ton of paperwork for the paper trail.
Make Your Other Payments On Time - This is not the time to get behind on payments. Don’t miss your student loan payment, or that small minimum payment on that little Kohl’s card you have. Now is not the time.
