What To Do When Purchasing a New Home
Homebuyers may not realize they are hurting themselves during the mortgage application process. Here are some actions you’ll want to keep in mind when applying for a new home loan.
Maintain your current employment.
Your loan is qualified based on your current income history. A change in employment might eliminate your Loan Advisors ability to include income such as bonuses or overtime.
Keep your current and active bank accounts.
Wait until after the process is complete and you have the keys to your home before changing banks. This might make sourcing the funds used for down payment and closing costs very difficult to use and creates more paperwork.
Save money for a down payment.
Saving money can be challenging but you will need enough money for a down payment and settlement services, so keep those funds available.
Do not make any large cash or unverifiable deposits.
Any large deposits in your bank account should be discussed with your loan advisor before placing them in your account. According to the Patriot Act this could require additional documentation or those funds will not be considered.
Do not run up credit card balances.
This will increase your monthly payments and could disqualify you for the home you are buying. Plus you do not want to incur debt that you cannot afford to repay.
Wait to buy any big-ticket items.
Again, wait until after your loan has closed to buy that new sofa you want for your new house. If you don’t end up getting the house, you’ll avoid getting stuck with a new item that might not fit in your apartment.
Avoid letting other companies run your credit.
More inquiries create more questions that need answers and paperwork. Who wants that? Wait until the process is complete.
Do not co-sign for anyone on a loan.
This debt will become yours in the eyes of the lender and might disqualify you from your home purchase. This will increase debt to your ratios and possibly disqualify you from the loan you are seeking.
Be upfront and honest about new debts.
During the application process, always tell your Loan Advisor of any new debts you acquire. They might impact your qualification levels.
The biggest thing you’ll always want to DO is consult your Loan Advisor when anything happens that might impact your credit, income, or assets. If you’re unsure, ask questions. Loan Advisors are highly trained and licensed so they will be able to address all of your concerns. Do your part to ensure a fast, accurate, and enjoyable loan process for all parties involved and count on your Loan Advisor to stick with you through the entire process.