Preparing Your Finances to Buy a Home and What Not to Do.
Tips For Buying a House.
|Searching for Mortgage Advice or Real Estate Advice? We are here to help! Give us a call at 916-672-6130. Ready to begin? Apply Online Now. *California Properties only|
Be Ready Before You Buy. Some Tips to Look Out For When Purchasing a Home.
In the rush of excitement that comes with an accepted offer to buy and a home loan approval from the lender, some Homebuyers make the error of carrying their enthusiasm straight to the mall or appliance store. There still are major hurdles to jump through before your loan closes and you actually own the home. Here are some actions to stay clear of before closing to be sure your transaction goes well and closes on time.
• Don't buy Big-Ticket items while your loan is in process. Although you may be dreaming of ways to turn your new house into a castle, avoid big-ticket purchases like appliances, electronics, or furniture. You will also want to stay away from vacations and vehicle purchases until your loan closes. You will send up red flags with your lender if you finance new appliances on your credit cards during your loan process. Using cash to purchase big items can also be an issue: most lending institutions look at your available cash when approving your mortgage. Buying a car in the middle of the transaction has killed more deals than you can imagine.
Lenders require that you have enough money for your down payment and a couple of months of payments left in your bank account, and they will verify this right before you close escrow and if the money has been moved or is not there anymore your loan could become denied. Not to mention if you use a credit card this could reduce your credit score or increase your debt-to-income ratio to the point you no longer qualify. So DO NOT do anything with your finances while you are waiting for your home loan to close without the advice from Loan Officer.
Don't be fooled by the "Buy Now Pay Later" companies out there. Although you might be able to buy a piece of furniture today and pay for it 12-18 months later your credit will be checked to see if you qualify for their deal. This will not only alert the lender that you have purchased something that could potentially disqualify you from buying your home it could also lower your credit score enough to disqualify you as well.
• Don't Change your Job. Consistency in your work history is a positive thing to lending institutions. Getting a new job may affect your ability to qualify for a mortgage loan - even if you are improving your salary situation. If you do switch careers before final loan approval, your mortgage could be denied. Always confirm with your Loan Officer before changing anything with your employment, that includes getting a raise.
• Don't move money around or change banks. As the lending institution considers your mortgage loan package, you will be asked to produce bank statements for recent months on your checking accounts, savings accounts, money market accounts and other liquid wealth. Your lending institution needs to see a consistent flow of your money over the pay period, in the interest of avoiding fraud. Switching banks or transferring money elsewhere - for whatever purpose - may make it harder for your lender to document your funds. Lenders will also require an explanation for any "Large Deposits". A Large Deposit is anything over $250.00, so be mindful of all your transactions and be prepared to explain any large deposits you have made over the last several months.
• Don't give funds directly to the seller. Your good faith deposit or Earnest Money Deposit (EMD) does not belong to the seller: it remains yours until the sale closes. Some For Sale by Owner (FSBO) Sellers might not realize that these good faith funds are to be used for your expenses upon closing and should be held in an escrow account. Find an Escrow or Title company, who is able to hold the funds or put them in a trust account until closing. Should your home purchase fail, your purchase contract should dictate to whom the good faith deposit should go? By using the services of one our Licensed Agents we will take care of that function for you. • Don't do work on the house prior to the close of escrow. If you enter a house without permission it is trespassing and you could be prosecuted. If you put your money into work on a home and something happens where you can't purchase the home you will lose that money. Also, there is no insurance, in your name, on that home, so if something happens to the house while working on it, you could be sued by the seller. An Agent should never give you permission to work on a house prior to it transferring to your name and the proper insurances are in place.
- Don't Move into the property prior to it closing escrow. If you move into the property prior to owning the home you will have to wait 6 months before your lender will allow a loan to close. Most Agent's are not aware of this so do not let this be an option to occupy the home prior to owning it.
- Get Inspections prior to closing. Get a pest inspection and a Home Inspection. These inspections will expose any active pest infestation that could be compromising the structure of the house. The home inspection will check all the major appliances in the house and make recommendations to cure any problems. I would also recommend a roof inspection to determine the life of the existing roof.
**We do have workarounds for those that may have made mistakes with other lenders. So call us we can help make a plan cure a mistake you may have made.
MAE Capital Real Estate and Loan
Call us we will walk you through the process
916-672-6130 or Click Here to Email Us
Keywords: home buyer tips, home buyer information, homebuyer don'ts, In contract what now, after the contract, what happens after you are in contract, what should i do when buying a house, home buyer information, home buyer information, home buyer stuff,stuff home buyer should know, what home buyers should know, Loan proceeds info, home buyers does and don'ts, transferring money during loan, changing a job during a loan, getting a raise when applying for a loan, transferring money during a loan, changing bank account during a loan, changing jobs during a loan, transferring money during the loan process, changing jobs during the loan process, getting a raise during the loan process, moving money around during the loan process, giving the real estate deposit to the seller, changing careers during the loan process, what not to do during the loan process, knowing the loan process, the loan process, what to look out for during the loan process, the loan process defined, changing employers during the loan process, close of escrow problems, problems during the loan process, possible problems during the loan process, pitfalls of the loan process, thing to look at for during the loan process, home buyer tips, pitfall with buying a home, using your credit card while buying a home, buying a car while buying a home, working on potential home purchase, what not to do when buying a home, Sacramento buying tip, trick to buying a home, tricks to buying a house, buying a car while buying a home, large deposit verification, getting a loan basics. basics to getting a home loan, Real Estate pitfalls, things to avoid when buying real estate, real estate credit tips, Real estate contract questions, Loan tips, home buyer contracts, Loan process tips, things to avoid when buying a house, tips for buying a home, Advice for home buyers, Free advice for home buyers, Home Loan Fails, What no to do when buy8ng a home, what to look out for when buying a home, Secrets to being a good home buyer, home buyer advice, what a home buyer needs to be prepared for. Advice when buying a home, Good advice for buying a home, home buyer tips and tricks, Rocklin Coldwell banker, Rocklin Remax, Rocklin century 21, Rocklin Intero Real estate, what to do when buying real estate, home buying advice, advice when buying a home, mae capital advice, helpful hints when buying a house, tip and tricks to know when buying a house tip when buying a home, what happens when I am in contract to buy a home, what happens after I ink a contract to purchase a home, how long does it take for a home loan to close, Home Loan basics, Home Purchasing advice, Advice when buying a home, Good advice when buy8ing a home, buying a home basics, what should I be doing when I am buying a house, Free home buyer advice, Advice for buy9ng a home, Real Estate advice or helpline, home buying etiquette, the rules of buying a home, home buying guidelines, what I need to know when buying a home, what should I know to buy a house, what should I do to buy a house, where do I start when I want to buy a house what do I need to do to buy a home, home buyer knowledge, home buying info, what to look out for when buying a home, tips on house buying, give me some tips to buying a house,