Loan Tips--Buyer Dont's

Things to avoid before buying a home

We got the pre-approval written, your offer has been accepted and your loan is being processed.  Just waiting for the closing date.  This is when it is most tempting to get ready for the move. Unfortunately, your actions during period could have some huge influences on a final loan approval. While it is tempting to rush out to buy things to fill your new home. But there are still a few major hurdles to overcome before the keys are handed out. With the current laws and process, most if not all Lenders will pull you credit again a few days before closing.
 
Here are some things to avoid during the home buying process to assure your transaction goes as smoothly as possible:

• Don't make an expensive purchase. It may be tempting to order that new sofa for your soon-to-be living room, but its best to avoid making major purchases like furniture, cars, appliances, electronic equipment, jewelry, or vacations until after the closing. Financing that furniture with a store credit card or even one of your own credit cards could jeopardize your credit worthiness during the time it means the most. Using cash to purchase big items can also create a problem because many banks take into consideration your cash reserve when approving your mortgage.
• Don't get a new job. Lenders like to see a consistent job history. Generally, changing jobs will not affect your ability to qualify for a mortgage loan - especially if you are going to be making more money. But for some people, getting a new job during the loan approval process could raise some concern and affect your application. 
• Don't switch banks or move money around. As your lender reviews your loan package, you will likely be asked to provide bank statements for the last two or three months on your checking accounts, savings accounts, money market funds and other liquid assets. To eliminate potential fraud, most loans require a thorough paper trail to document the source of all funds. Changing banks or transferring money to another account - even if its just to consolidate funds - could make it difficult for the lender to document your funds.
• Don't give a good faith deposit directly to the seller in a FSBO purchase. As a rule, your good faith deposit belongs to you, not to the seller, until the deal closes. Your FSBO seller may not know that your good faith funds should be applied to your expenses at closing. Get an attorney or other neutral party (title company) who can hold the deposit or put it in a trust account until you close on the home. Your purchase contract should dictate to whom the funds go should the transaction fall through.
• Don't disregard your lenders requirements. You may have been pre-approved for the loan but your work with the lender is far from over. In order to process your loan, you need to meet certain requirements. Your lender will need copies of your bank statements, W2s and other paperwork. It is up to you to get it to him or her as soon as possible. Failure to submit certain qualifying documents could cause you to lose your loan and the financing you need to buy your home.

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Interesting Links

School District Rating Site

Michigan Real Property Tax Site

First Time Home Buyer Tax Credit

Michigan Association of Realtors (MAR)

100 Questions and Answers from HUD

Michigan Mortgage Lenders Association

Home Tips

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Raquel “Rocky” Moore
NMLS Mortgage License #138789
email: Raquel

Mortgage 1 Inc.
45816 Schoenherr Road
Shelby Township, MI 48315
Phone 586.612.5001
Fax 586.677.3898

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Whether you are looking to buy, refinance or receive equity from you home, my team has the perfect mortgage loan for any stage of your life. We are mortgage experts and work to understand your unique financial goals and help you make an informed decision about choosing a mortgage that fits your lifestyle. My mission is to carefully guide you through the entire mortgage loan process,  so that you feel confident as you make choices about the many options available for your financing strategy.

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