The 10 Home Buying Commandments
Heritage Home Loans
Heritage Home Loans Spokane, WA
Published on June 27, 2017

The 10 Home Buying Commandments

Home Buying, Homebuyer Tips, Mortgage

The 10 Home Buying Commandments

The 10 Home Buying Commandments

 

Once you get your offer accepted in most cases the loan process is really just getting started. Your lender will be ordering the appraisal and preparing your loan for underwriting. Your loan officer is using the information you provided them during the loan application. Your income, credit, and assets are all major factors in getting your loan approved. Changes to any or all of them could affect your ability to get your loan approved.

Here are 10 things to avoid at all costs during the home buying process.

 

Thou shall not change jobs, become self-employed or quit thy job.

Any change in income will have a huge effect on the loan closing. If you are currently an hourly or salary employee and thinking about opening up your own business or switching to a commission based job wait until your loan closes. These kinds of changes will keep you from buying a home for 2 years in most cases.

p.s. You may hate your boss but play nice until your loan closes.

 

Thou shall not buy a car, truck or van (or you may be living in it)

 

One of the major factors of a mortgage loan being approved is your debt to income ratio. Vehicle loan payments are typically some of the higher payments seen on a credit report. Not to mention a new debt with a high balance could negatively affect your score.

 

Thou shall not use credit cards excessively or let current accounts fall behind.

 

The balances on your credit cards have a huge effect on your credit scores. Running up the balances could change your scores. This could change the loan program you qualify for or the rate you have locked in with your lender.

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Thou shall not spend money set aside for thy closing costs.

 

You have worked hard to save up for the down payment and closing costs for your new home. Don’t spend it when you are close to the finish line. You may have to tighten the budget for a couple of months to get to the closing table. It will be worth it when you get the keys to your new home.

 

Thou shall not omit debts or any other information from the loan application.

 

During the mortgage process, all of your financial information will be uncovered. It is virtually impossible to have information omitted from your loan application. Because it will be found out it is always best to be upfront with your lender. Most lenders are professional problem solvers and have seen an issue similar to yours. Let them help you through it.

Thou shall not by furniture or other appliances for the new home.

 

We do this for the same reason as not buying a car truck or van. Even though there are huge sales on the new dishwasher or couch that would fit perfectly into your new home you will need to wait until you get the keys. Sales like this happen all the time!

 

Thou shall not originate any inquiries or open any new lines of credit.

 

Many lenders do what is called a “credit refresh” just before final loan approval. This is a check to make sure noting major has changed since the original credit pull by the lender. If there are inquiries the lender will need to pull a new full report. This could change your scores and ability to qualify. If you have opened any lines of credit or made any large purchases they will change the status of your approval.

 

Thou shall not change bank accounts.

 

If you change bank accounts you are adding to an already large and overwhelming paperwork needs list. For many, this is the worst part of the process.

 

Thou shall not co-sign for a loan for anyone.

 

While you think it is generous to help someone out. Your generosity could come back to bite you. The loan you are co-signing on will have an effect on your credit and could affect you mortgage closing.

 

Thou shall not make any large deposits into their bank account that aren’t supported by a paper trail.

 

If you have been saving cash under your mattress for the purchase of a new home you will need to deposit in the bank and have it “seasoned” for 2 months prior to using it as part of a transaction. All large deposits into your bank account will need to be documented and sourced if they going to be used as part of your closing costs. If you are using gift funds as a part of your down payment or closing costs discuss this with your lender to make sure you do it correctly.

Heritage Home Loans
Heritage Home Loans Spokane, WA
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