News and Events
June 19, 2008
Things to avoid before buying a house
What things should I be careful about before I buy a new house?
First
of all, avoid major purchases. It is
very tempting to go out and buy all sorts of new things for the new home, but
it is in your best interest to wait until after you have closed on the home
before purchasing those items on credit.
This includes buying a new car or taking out any other installment
loan.
Second,
avoid moving money around. You may be
asked to provide two months worth of bank statements to your lender. If you have made any large deposits or
transfers within that time frame, the lender will require that you provide some
sort of paper trail for those funds.
This can be time consuming and frustrating, so try to keep the movements
to a minimum.
Last,
for certain homebuyers, avoid changing jobs.
The change can affect your ability to buy a home. Commissioned homebuyers should avoid the
switch because lenders will average the most recent two years, and switching
jobs shows a level of uncertainty with your income. Hourly employees who work overtime should
avoid the change as well because lenders will not be able to count the overtime
worked for the new job.
If in doubt, call your mortgage loan officer and they will let you know the impact a change could have on your ability to purchase a new home.
Article written by Matt Sammler.
