What NOT To Do Before Buying a Home
Here are some words of wisdom from my dear friend Toula. In my experience "first time home buyers" are typically good about asking what to do, but this post is a fantastic reminder about what not to do! Buying that fancy new car the week before closing can keep you from being able to close on your new home. Thank you Toula for another fantastic advice!
Cheers,
Betina
For buyers who plan on purchasing a home within the next six months, it's important to get the finances in order and set a reasonable plan.
There are also a few things one should NOT do when preparing to enter the buying process.
To ensure a smooth process, you'll want to avoid the following:
- Stay away from making any other large purchase of any kind -- especially a new car. Even if you have accumulated the savings to cover it responsibly, control the desire to spend. A large purchase, a car or otherwise, can affect your mortgage terms when the time comes to seek financing. After applications are submitted and the numbers are crunched, your extra loan payment will affect the terms you wind up receiving when all is said and done. The less complicated your finances appear to the loan officer, the better off you will be. I've actually had a buyer go from the closing table, right to the dealership to purchase a much needed vehicle!
- Avoid any unnecessary moving around of money as well. When a lender reviews your finances for approval, one of the major concerns will be the source of your down payment, closing costs, etc. You'll also need to provide statements for the last two or three months on any assets. If you have moved money around recently, there may be large deposits and withdrawals on your accounts, which will make it difficult for the lender to properly document. Try to leave your money where it is until after you speak with a loan officer; this includes not changing banks either.
- If you can prevent it, don't voluntarily change jobs while trying to purchase or close on a house. Again, the source of your income is extremely important to a lender. If there is any question about where your money will be coming from, it could put your deal in jeopardy and increase your level of risk to the lender. Although sometimes a change in jobs is unforeseen and unpreventable, try to close your deal before making a professional move. You need the lender to be confident in your ability to pay back the loan. Showing a long history of steady income is crucial to your success as a buyer.
By appropriately planning and making smart financial decisions throughout the buying process, you will experience less hurdles and a much more efficient transaction.
Toula N. Rosebrock (of Diane Turton, Realtors) – Broker / Sales Associate
Specializing in all of Ocean County - Lacey Township Real Estate, Forked River / Lanoka Harbor
Unique Name … Unique Agent … Unique Service!
Websites: www.ToulaRosebrock.com
www.OceanCountyNJRealEstateSales.com
Waterfront Properties, Single Family Homes, Multi Family Homes, Condos, Townhomes, Adult Communities, Vacant Land, Commercial Properties, 1031 Exchanges
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