What you should and shouldn’t do when purchasing a new house.

If you are in the process of buying a house, what are the do’s and do not’s you have to be aware of to make sure the transaction goes smoothly? To help you avoid the pitfalls, today I’ll share five things you shouldn’t do:

  1. Don’t start a new job. Although it’s not the most important item for getting approved, job history and length of time that you’ve been at your current employer make a difference.
  2. Don’t purchase a new car. The preapproval that’s issued by the lender is determined by the current level of debt you have, which is your debt-to-income ratio at the moment that you applied for your home loan. Getting a new loan on a car could change all of that. 
  3. Don’t make late payments on any of your existing debts. A majority of lenders will request a new credit report, typically one or two days before closing. Any late payments that show up could affect your loan.
  4. Don’t make any unusually large deposits. The mortgage underwriter will review your checking and savings accounts to see if there are any larger-than-normal deposits in the months leading up to your closing. Try to avoid any large deposits that don’t coincide with your normal banking history.

    “Any late payments that show up could affect your loan. ”
     
  5. Don’t open a new bank account. Opening a new account will create some suspicion among your mortgage lenders. They might wonder if you’re trying to hide funds on another account or if you have any unrecorded debt obligations that will be filed with the new account.

Then to add one thing that you don’t want to avoid, make sure you always have a home inspection done. It’s very important when you’re buying a house, that way you can check its condition.

If you want further information, please feel free to send me an email or give me a call; I’d be happy to help.