Things Home Buyers Should NOT Do
Sunday, 30 May 2010 11:25
Buying a home is a big deal for nearly all home buyers. The purchase of a home is the largest investment most people will ever make. There are some very common mistakes home buyers make that can cause the loan to be denied on the day of closing.
1. Do not buy anything that could affect your credit.
Often times buyers will make large purchases prior to closing on their new home such as buying a car or furniture for the new home. Most people tend to make large purchases on credit. Lenders will run your credit a day or two prior to closing and occasionally, on the day of closing. If they find the home buyer has acquired additional debt, the loan underwriter will do another debt to income analysis. The new analysis could cause the home buyer to no longer qualify for the loan resulting in the closing to be called off. In the midlands of South Carolina, most contracts read that all financing contingencies expire five days prior to closing which would now mean the home buyer is in default.
2. Leave your money where it is.
One of the requirements by loan underwriters for home buyers is to show proof of funds for down payments and other financial burdens when purchasing a home. Depending on the type of loan, down payments may not be borrowed or given to the home buyer by others. Underwriters will require the funds for down payments to be seasoned which usually means the money must be in your account for at least sixty days. If they find the money was deposited recently, the underwriter will require you to prove where the money came from. This will require additional documentation which is at the very least a huge nuisance. Do not move any money from one account to another, just leave it where it is until your lender tells you to move it or take it out.
Home buyers would be wise to find a lender they can trust and can get in touch with anytime you need them. The one person I use and many of my clients have used is Ben Blanks, owner of Three Rivers Mortgage, located in Columbia South Carolina. Ben and his associates will sit down with you and make sure you get the right loan for your specific situation. Once you have your dream home, Ben Blanks will show you how to pay off your mortgage in about half of the scheduled time.
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