During the process of purchasing your new home, actions you take might harm your ability to qualify for a loan.
As a buyer, do not take anything for granted. Prior to doing anything that may effect your credit, check with your experienced lender first. Your financial decisions or acts may hurt your ability to buy a home.
I would NOT do the following……..
1. DO NOT TAKE ON ANY NEW DEBT: Do not make any purchases that will increase your debt (cars, furniture, anything that you may put on credit).
2. DO NOT DEPOSIT ANY CASH INTO YOUR BANK ACCOUNTS: All money that is deposited into your bank accounts must be 100% documented - no exceptions. Your lender may be required by the underwriter to see proof of where these funds came from as “gifts” or “loans”, which may cause your loan on your new house to be denied.
3. DO NOT CHANGE JOBS: Talk to your lender if you expect to have a career change. Your employment will be verified by your lender several times and must be deemed reliable, stable, and at the rate of income you claim.
4. DO NOT “CLOSE” OR “OPEN” ANY NEW CREDIT CARD ACCOUNTS: Opening new accounts or closing current accounts can have a negative impact on your rating and FICO scores.
5. GIFT FUNDS: If allowable for your down payment or closing costs, the “Donor” will be required to provide a bank statement proving your “Donor” has the ability and did gift the money to you. Prior to transferring any money, it is very important to speak to your loan officer for specific instructions on “when” and “how” to transfer funds to your account.
6. DO NOT PACK TOO SOON: Buying a new home is a “process” and there can be delays. There may be changes in your purchase contract or underwriting guidelines that could extend the close of escrow date. Final documents you pack away may be needed during the loan process – plan accordingly.
In our current lending environment, you must make every reasonable effort to eliminate all doubts a lender may have about your credit and ability to purchase a home.
If you communicate with your lender and Realtor throughout the entire escrow period (30-60 days), your home buying experience will be a fun and exciting time, not something that keeps you up at night.