This blog by Jeff Pearl is always worth hearing again. Some buyers are so driven by impulse buying and have no idea of the impact it can have on their ability to buy a home. Thanks Jeff for the reminder for buyer.
The 10 Do's:
(1) Do shop for your loan. (2) Do Interview real estate agents, mortgage brokers, lenders and loan officers, settlement companies and/or settlement attorneys to determine the best professionals to handle your needs. (3) Do read and understand all paperwork involved before you sign anything. (4) Accurately report all of your debts. (5) Be honest about all sources of funds that you will use to purchase your home. (6) Be honest about all credit problems that you have or have had in the past. Many loan officers can guide you on how to raise your score if needed. (7) Be cautious about all unsolicited loan or refinance offers that show up in your mail or email. (8) Always make payments on time even if you are in a dispute with your lender or loan servicer. (9) Always contact your lender or loan servicer if you are or will have problems paying your mortgage. How you manage your debt can be a deciding factor. (10) Do study and understand how title will be held: ( Sole, Tenants in common, Joint tenants, Tenants by entirety, etc.
The 10 Dont's:
(1) Don't sign any blank documents. (2) Don't overstate your income. (3) Don't overstate your length of employment. (4) Don't overstate your assets. (5) Do not alter your income tax returns. (6) Don't list fake co-borrowers on your loan application. (7) Don't provide any false documentaion. (8) Don't lie about occupancy. ( Don't claim that you're buying a primary residence if you plan to rent it out.) Lenders do conduct loan audits within 60 days of closing to confirm borrower is living in the property. (9) Don't make large cash deposits into your checking or savings account in the 2-4 months prior to your loan application. (10) Don't apply for, or open any new credit lines while your home loan is in progress. ( So if the cashier at Kohls says " we'll give you 15% off if you apply for a Kohl's credit card, just say No Thanks ).
There are several more Do's and Dont's when buying a home. A professional real estate agent can usually guide you through the process. If buying or selling in Northern VA, Contact:
Jeff Pearl / REALTOR
RE/MAX Distictive- Lic in VA, MD, and DC
Equal Housing Opportunity Provider