Keep Your Home Purchase on Track
I love finding great articles to share – I’ve added my 2 cents in itatlics – enjoy – Sabrina
You’ve found your dream home. Make sure missteps don’t prevent a successful closing.
1. Be truthful on your mortgage application
You may think fudging your income a little or omitting debts when applying for a mortgage will go unnoticed. Not true. Lenders have become more diligent in verifying information on mortgage applications. If you fib, expect to be found out and denied the loan you need to fund your home purchase. Plus, intentionally lying on a mortgage application is a crime.
You might get away with your fib when you apply for your loan, but once you find a home and have an accepted offer. Your lenders underwriter will comb through every bit of your financial life. One fib will open a huge can of worms and you could find yourself in hot water. Because not only have you harmed your chances at getting a loan – you’ve held up a seller who is working in good faith with you and has pulled their home off market waiting for you to remove your contingencies and close escrow. DON’T LIE!
2. Hold off on big purchases
Lenders double-check buyers’ credit right before the closing to be sure their financial condition hasn’t weakened. If you’ve opened new credit cards, significantly increased the balance on existing cards, taken out new loans, or depleted your savings, your credit score may have dropped enough to make your lender change its mind on funding your home loan. Although it’s tempting to purchase new furniture and other items for your new home, or even a new car, wait until after the closing.
The only thing you should be doing is saving your pennies until you close escrow on your new home. People of lost their dream home because they spent money before closing. Not my clients though – I remind them constantly about the big picture!
3. Keep your job
The lender may refuse to fund your loan if you quit or change jobs before you close the purchase. The time to take either step is after a home closing, not before.
Amen – well said!
4. Meet contingencies
If your contract requires you to do something before the sale, do it. If you’re required to secure financing, promptly provide all the information the lender requires. If you must deposit additional funds into escrow, don’t stall. If you have 10 days to get a home inspection, call the inspector immediately.
There is a clause IN the Real Estate Purchase Contract (in California) that states – Time is of The Essence! We are not kidding. Time is contractual – do what you said you would do. Your mother will be proud!
5. Consider deadlines immovable
Get your funds together a week or so before the closing, so you don’t have to ask for a delay. If you’ll need to bring a certified check to closing, get it from the bank the day before, not the day of, your closing. Treat deadlines as sacrosanct.
We take each deadline deadly serious. Could there be delays? Yes of course, so much of the real estate purchase process is beyond your Realtors control – so make sure you’re doing what you should be doing when you should be doing it – it will streamline an already difficult transaction.
By: G. M. Filisko
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Thanks for reading – Sabrina