Buyer No No's

 

 

• DON'T make an expensive purchase. It may be tempting to order that new sofa for your soon-to-be living room, but its best to avoid making major purchases like furniture, cars, appliances, electronic equipment, jewelry, or vacations until after the closing. Financing that furniture with a store credit card or even one of your own credit cards could jeopardize your credit worthiness during the time it means the most. Using cash to purchase big items can also create a problem because many banks take into consideration your cash reserve when approving your mortgage. In today's underwriting world, your credit report will be re-pulled just before funding.  Any new or increased credit could seriously jeapordize your approval. 

 

• DON'T start looking for a car.  In today's credit market, even a single inquiry from a car dealer could give a mortgage lender a reason to deny your loan.  You will have plenty of time AFTER your escrow closes to do all of the shopping you want.  Even if you think a purchase won't blow your chances,  Call The LoansA2z team to make sure.

 

 

• DON'T get a new job. Lenders like to see a consistent job history. Generally, changing jobs will not affect your ability to qualify for a mortgage loan - especially if you are going to be making more money and staying in the same line of work. But for some people, getting a new job during the loan approval process could raise some concern and affect your application.  

• DON'T switch banks or move money around. As your lender reviews your loan package, you will likely be asked to provide bank statements for the last two or three months on your checking accounts, savings accounts, money market funds and other liquid assets. To eliminate potential fraud, most loans require a thorough paper trail to document the source of all funds. Changing banks or transferring money to another account - even if its just to consolidate funds - could make it difficult for the lender to document or source your funds.

 

• DON'T give a good faith deposit directly to the seller in a FSBO (For Sale By Owner) purchase. As a rule, your good faith deposit belongs to you, not to the seller, until the deal closes. Your FSBO seller may not know that your good faith funds should be applied to your expenses at closing. Determine which Title or Escrow company will be handling the escrow and make the Good Faith Check Payable to them.  They will hold the deposit in a trust account until Escrow closes. Your purchase contract should dictate to whom the funds go to should the transaction fall through.

 

• DON'T disregard your lenders requirements. You may have been pre-approved for the loan but your work with the lender is far from over. In order to process your loan, you need to meet certain requirements. Your lender will need copies of your bank statements, W2s and other paperwork. It is up to you to get it to us as soon as possible. Failure to submit certain qualifying documents could cause you to lose your loan and the financing you need to buy your home.

 

• If in doubt, call The LoansA2z team to make sure.