So, your on your way. You have found the house of your dreams. The lender tells you he thinks he can get this done. Your credit is good, your debt to income ratio is good, so are your trade-lines. You have all the winning factors to obtain a loan. I'm sure you feel great. Many customers who first come to us who are not pre-qualified come in having no idea what their credit score is and some believe their credit is so bad they can't get a pack of gum on loan. You then find, the total opposite. That somewhere along the line of restoring your credit worked ! Some will say, well if I can buy a house, I can buy a car, I can get the credit card I have been wanting, maybe I will go buy all new furniture for our new house.....STOP ! TALK TO YOUR LENDER or REAL ESTATE AGENT before you make any new purchases or it can stop the purchase of your new home ! When you apply for a mortgage loan there are several factors in evaluating you, your credit worthiness and home loan application. One of the things the Lenders, underwriting will look at is your credit score, your credit score tells them how well you have managed your credit over the years, they will also look at your debt to income ratio. They will give you credit for all the verifiable income you have and look at what you have going out from that money. If you are over extended this will hurt your chances for obtaining a mortgage loan. That is why it is crucial to NOT run out and buy anything or at least until your lender tells you its okay. Use extreme caution and listen to the wisdom and advice of your lender and/or agent as they want you to be in your new home ! Don't get ahead of yourself through all your excitement. All the other things will come and will come in time. But get into your new home FIRST. Listen to your lender/agent, they will give you the green or red light, but you as a word of caution should always stay in yellow....
A simple over-view and rules to live by when purchasing your new home is :
Don't make any major purchases such as a new car, expensive electronics or appliance, or anything else that you cannot pay cash for. The extra payments may prevent you from getting a loan.
Don't move money from one account or investment to another. One of the things a lender is concerned about is the source of funds for your down payment and closing costs. The lender will ask for statements for the last 3 months for all your bank and investment accounts and even your company 401K and retirement accounts.
Lenders like to see what is referred to as "seasoned money", that is, money that has been accumulating in an account over a period of months or years. If your bank account has a large deposit that was made less than 3 months ago they may think the money was a loan from a relative who is trying to help you qualify for a loan. Then you will have to prove where the funds came from which can be a time consuming process.
Please, leave your money where it is until you talk to a loan officer. And don't move a significant amount around without letting the lender know about it in advance.
The reward for your patience is ohhh sooo bitter sweet !