Four great ways to blow your home purchase
This is excellent advise and it should be taken to heart! This happens all the time and it's always amazing how something that seems so minor can truly blow the entire deal.
It happens almost every day. When you work in the regional office of a major lender you hear a lot of stories. When your wife handles a large portion of the files you hear even more. I have certainly had my share of these, too, even when the buyers are instructed, warned and threatened ... it happens.
Do not quit your job. This is the event that inspired today's post because it has happened on two of my wife's files in the last 90 days. The loan officer on this one is a seasoned veteran so they'll probably figure out how to get the guy a job. Once you apply - freeze. When you close you can thaw.
- Do not charge anything on any credit. It happens. First time buyers are the worst. They hear the words "your mortgage application is approved" and immediately they start applying for credit cards (often to buy furniture for their new home) or buy a new vehicle.
- Do not spend the money you have on hand. This one happens more often than number one but not as often as number two. When you fill out an application and say you have $31,500 in your savings account and $12,000 in your checking those numbers are verified and your closing costs/down payment has to come from that. If you bring a check from some account you never told your loan officer about that will halt the closing until those funds can be verified.
- Do not make any large deposits you cannot provide a paper trail on. Usually deposits over $500 have to be sourced meaning you will have to provide a verifiable paper trail of where that money comes from. The purpose of this is to show an interested party is not giving you the funds to make it happen. You can get a gift from a relative or "significant other" provided those funds are traced as well. In that case you need a specific letter you can get the form from your loan officer.
Rest assured there are other ways to blow it but these seem to be the most common and should also be the most obvious. When you know these in advance you can time your changes to make sure they don't interrupt or kill your chances at getting that new home!
Image: Andy Newson / FreeDigitalPhotos.net
Ken Cook - Community Outreach Leader Southeast Region (I make friends, handle social media, SEO/SEM/SMO that's my job :) - We do FHA, USDA, VA and Conventional Home Loans (678) 439-8683 NMLS ID 208452
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