Best Practices During a Home Purchase


Below you'll find a list of best practices to ensure a smooth loan process.
 

Don't Buy Big-Ticket Items

Many new home buyers in their excitement get the urge to rush out to buy new appliances, furniture, etc. as soon as the seller says "yes." It's human nature, you can already picture yourself cooking on that gourmet stove with shiny new pans or hosting the next Superbowl with your brand-new top of the line 70-inch flat screen. It's tempting, but you must resist that week's "this Saturday only" sale until your keys are in hand. Here's why. Your finances are monitored throughout the entire loan process all the way up to the closing date. Even if you pay case, you can inadvertently disqualify yourself. Now if it is truly the deal of a lifetime, please call me, and I will see if there is any way to make it work.
  

Don't Change Jobs

To demonstrate that you can repay your loan, we will verify your employment history for consistency and stability. If you change jobs during your loan process, it will delay your closing. If you get a promotion with your current employer, congrats! Although we may not be able to use your new income, it won't delay your closing. We understand there are opportunities that can't be passed up. However, keep in mind that your loan approval could be affected so please do not make any changes unless we speak first.
  

Don't Change Banks, Move Money or Make Large Deposits That Can't Be Sourced
 

You'll be asked to provide your asset statements for the last two months to verify where your down payment is held (or cashflow). Furthermore, any money that is put into escrow must come from one of these verified accounts. If you change banks, move money around or make large deposits, you will be asked to provide further documentation which could delay your closing. Unless it is absolutely necessary, it is best to keep your money where it is until your loan is complete.


Have questions about best practices during your home purchase? Give us a call at 707-290-5167. We are here to help!

 

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