Many buyers anxious to take advantage of today’s low interest rates and homes priced 30% to 40% lower than they were six years ago, are investing in real estate. After getting pre-approved for a loan, many buyers are also “shooting themselves in the foot” by destroying their credit beforethe sale finalizes. Unfortunately, they aren’t even aware they are doing this until it’s too late and they are turned down by their lender, sometimes within hours of expecting to close.
I recently read an article written by a lender, warning buyers about things they should NEVERdo when they apply for a loan. I wanted to share this with you:
1. Do not quit your job. One of the worst mistakes a buyer makes is quitting their job before the loan funds. Lenders will call employers to verify employment up to the day the loan is ready to fund, making sure the borrower is actively employed.
2. Do not go on a shopping spree. Stop using your credit cards, especially on large purchases like furniture or cars, as soon as you have been approved for a loan. Lenders will go back and re-check credit before the loan funds.
3. Do not start applying for new Credit Cards. This will affect your credit negatively. Your credit score will go down.
4. Do not raid your piggy bank. When you fill out an application and say you have $47,500 in your savings account and $10,000 in your checking account. 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.
5. 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. In that case you need a specific letter you can get the form from your loan officer.
6. Not contacting Nancy Hankin to assist you with all your Palm Springs area real estate needs!
I hope this information has been helpful. You might also want to share this information with someone you know who may be thinking of buying a home. I’m here to help in any way I can for all your real estate needs.
14 Mistakes buyers make when purchasing a home
IMPORTANT: If you or someone you know is interested in buying or selling a home in the Palm Desert Area, try searching properties on the same Desert Area MLS Realtor’s use, or give me a call….or visit my website at Palm Springs Homes and Estates. I will be happy to give you or your referral my “red carpet service.” After the sale, I will send you a $50 Gift Certificatetowards dinner in a fabulous Palm Springs Area Restaurant so you can celebrate!
Brought to You By Your Favorite Realtor,
Nancy Hankin
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