So, you've found your home, and you're looking to get approved (or pre-approved) for a loan. Here are 5 things you should NEVER do when purchasing a home. These follies will bring your loan to a halt faster than interest rates rose this past week!
1. Make a Big Purchase: We know you're excited to move into your home, and you want to make it your own. But, refrain from buying furniture, home repair supplies, carpeting or anything that puts a dent in your credit card. Also steer clear from car purchases at this time.
2. Slack on Paying Bills: You want your credit to be as pristine as possible, and letting bills fall by the wayside will ding your credit.
3. Apply for a New Credit Card: During the loan process, a new credit card will show a significant lowering in your credit score. Even after your loan is processed, your credit could be checked again before closing. So, no new credit cards until you have the keys in your hands.
4. Make Large Deposits or Withdrawals: Big amounts of money moving in and out of your account send up a red flag for loan officers. If for some reason you do need to move large amounts of money, speak with him or her first and get advice.
5. Quit Your Job: You want to appear as stable as possible, and you will also need to provide past paystubs. A new job might mean a delay in the loan process while you wait to accumulate enough paystubs from the new job.
If, for some reason, you need to break one of these rules, there are a couple of things you can do.
First, contact your loan officer to get advice. Even if you just want to make sure that a financial move is a good one, call them. They are more than happy to give you information.
Second, you can always write a letter to keep in your loan file. For example, if you need to move a large sum of money for a valid and unavoidable reason, write a concise and clear letter stating what happened. Send it to your loan officer to keep in your file as additional information for consideration.
And, if you ever have any questions, feel free to contact Lang Premier Properties to speak with a knowledgeable agent!
Lang Premier Properties is home to a leading Oakland County Short Sale Realtor. We specialize in all aspects of real estate including short sales, foreclosures and working with home buyers and sellers in the Troy, Birmingham, Rochester Hills and Bloomfield Hills luxury market. When you hire Lang Premier Properties, whether you are purchasing or selling Metro Detroit Real Estate, you can rest assured that you are in good hands.