I don't live in Crofton, but have seen homebuyers shocked that their loan was denied for these very reasons.
Please do not buy a big screen plasma TV for each room until AFTER closing!
Dear Crofton Homebuyer,
The seller accepted your offer, your home inspection is complete, the appraisal has been ordered... now the fun of renovating and furnishing that home begins! But wait...
Don't go shopping yet for furniture, appliances, and contractors.
Right before closing, your lender is required to check your credit again. Any credit inquiries could lower your credit score and raise your interest rate. In other words, don't go window-shopping for new appliances, replacement windows, bathroom upgrades or new furniture because the vendor may do a routine credit inquiry to make sure you're qualified to buy their product or service. Even if you don't make the purchase or you use cash to pay for it, that credit inquiry could be enough to change your loan terms.
Needless to say this includes other major purchases such as a car... My suggestion: Don't even walk onto the lot of a car dealer until after closing.
If you're talking to contractors about having some work done after settlement, keep in mind that any contractor you hire to work there MUST be certified by the EPA for homes built before 1978. ( Frankly, that's most homes in the greater Crofton area.) Non-certified contractors are subject to a $32,000 fine for working on your home AND a future buyer may walk away from your home if they discover your updating was not performed by an EPA certified contractor.
Becoming certified is relatively easy for contractors: an 8-hour approved class, a $300 certification fee (good for 5 years), and a 2-page application. Any true professional will have this, so don't settle for less. The result of breathing lead-based paint dust could be permanent brain damage for you and/or your children - not something you want to risk.
From now until closing, expect your lender to ask for additional information
You may feel there is some duplication with info provided previously, but please be patient. Today's lenders and underwriters are still learning their way through all the new regulations recently imposed on them, and they are drowning in paperwork. Rather than debate that you've already provided something, just copy and send any requested item again as soon as possible. It will help reduce the aggravation and get you to settlement on schedule.
I recommend you keep a copy of everything you provide to your lender in one folder. Then you will have all your mortgage paperwork in one place so it will be easy to find if you need it again.
If you have any questions between now and settlement, please feel free to give me a call or send me an email.
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