Buyers often contact a lender and start the application process for a home loan. Once they’ve received the green light to commence house hunting, they think they’re smooth sailing. What buyers don’t realize is that once they receive their pre-qualification or pre-
approval from their lender, the lenders job is NOT over!!! They will continue to verify that the information does not change throughout the process for your personal information, credit, job history, etc. ANY MAJOR CHANGE BEFORE CLOSING CAN TURN YOUR HOME BUYING DREAMS INTO NIGHTMARES!!!
ATTENTION!!! THIS LIST COULD BE THE LIFE VEST FOR YOUR HOME LOAN OR HOME PURCHASE!!!
DON’T QUIT YOUR DAY JOB (OR NIGHT)!!!
Most banks will verify employment before closing. ANY change in employment could delay closing at best, or possibly even cost you your new home!
DON’T MOVE ANY MONEY!!!
All money MUST have a paper trail. It’s a good idea to use the same account for the entire real estate transaction. Any account used will require documentation and sourcing for funds.
GET A BILL OF SALE, TRANSFER OF TITLE, OR RECEIPT FOR ANYTHING SOLD AND DEPOSITED!
If you’re planning on using the funds from anything sold for your down payment or closing costs, get a signed bill of sale, transfer of title, or receipt signed and dated by the buyer. Most lenders will NOT allow mysterious money to be used! There MUST be a source of funds. Talk to your lender before selling anything to be used as a source of funds.
DO NOT DEPOSIT THE CASH FROM UNDER THE BED!
If you save and stockpile cash under the bed, in a hole in the backyard, or anywhere else…DO NOT DEPOSIT THE FUNDS UNTIL YOU SPEAK WITH YOUR LENDER. MYSTERIOUS DEPOSITS CAN BE AS DANGEROUS AS LARGE WITHDRAWLS! Again, ALL FUNDS MUST HAVE A SOURCE, OR COULD BE RECIPE FOR DISASTER!
PAY YOUR BILLS ON TIME!
Seems quite elementary, however, sometimes the expenses of buying a home can add up, and as you’re trying to save to buy a home, you might think about delaying the payment of another bill! ROBBING PETER TO PAY PAUL DURING A REAL ESTATE TRANSACTION CAN COST YOU
YOUR HOME! One of the biggest hits on your credit is late pays. It takes a very long time for a credit score to recover from even one reported late pay. Your lender most likely will run your credit one last time before closing. If your credit score changes, you might be sent back to the drawing board!
DON’T BUY ANYTHING!!!
DO NOT make ANY major purchases! NO CARS (leasing or purchasing), FURNITURE, APPLIANCES, ETC!!!! Any change in your credit or your debt to income ratio could alter your pre-qualification or pre-approval. You only want things to look better. It would be such a sad day to have furniture scheduled to deliver and NO HOME to put it in!!! It HAS HAPPENED!!!!
DO NOT LET ANYONE RUN YOUR CREDIT! DON’T CO-SIGN! DON’T OPEN ANY NEW ACCOUNTS! DON’T CLOSE ANY ACCOUNTS! DON’T PAY OFF ANY CREDIT CARDS!
Long story short, do not make any changes regarding any credit at all existing or new without first consulting your loan officer, mortgage officer, or banker!!! Any small adjustment in your credit score with new inquiries, balances, or history could at least affect your interest rate and possibly affect your ability to buy a home at all!!!
DON’T USE YOUR CREDIT CARD!
Changes in balances on your credit card can affect your score!!! Please… for the sake of your Realtor’s sanity and your credit score, DO NOT GO ON VACATION ON YOUR CREDIT CARD BEFORE CLOSING!!! If you like to celebrate by shopping…
DON’T CHANGE YOUR STATUS!
Getting married, divorced, or filing bankruptcy during a home deal will most likely be a delay at best, possibly a deal BREAKER! Any change can change the fate of your home buying process!
DON’T LIE TO YOUR LENDER!!!
Not only can lying or making false statements during a mortgage application process cost you your home, it could also cost you fines and jail time!!! Don’t lie outright or by omission!!! MORTGAGE FRAUD IS A CRIME! JAIL IS NOT THE HOME OF YOUR DREAMS!!!
BROKER ASSOCIATE, RE/MAX TOWN AND COUNTRY