I’ve had some close calls with buyers almost losing out on buying a home. One time a buyer opened up three credit accounts, which knocked her credit score down and out of range for her loan. Fortunately, this only caused a delay and we were able to resume her home search and find the perfect home.
Then I had a buyer under contract and the underwriter wouldn’t allow the cash money he used as a deposit because it wasn’t “sourced”. (Ask me and I’ll explain.) So my buyer actually ended up selling his car in order to have the cash he needed and could show where it came from!
There are so many things that can mess up a buyer’s financing. And when this happens – the buyer could lose their financing and the home they want to buy! Here are a five DONT’S to keep in mind when you’re getting ready to buy a home or are under contract.
- Don’t change jobs. Whatever you do, keep your job! Don’t change jobs, quit, or change to a self-employed position.
- Don’t open or close accounts. Credit score is negatively affected when you open or close an account. So, sit tight and don’t make any changes until after you close on your new home.
- Don’t make any large purchases. This includes a new vehicle or new furniture. Buyers often get burned here thinking that “don’t pay for 12 months” won’t affect their loan.
- Don’t make any large deposits. This can cause the bank to be suspicious about your money source. Now, if you are moving money from one account to another for the home purchase, this can be documented.
- Don’t be late on bill payment. This negatively affects your credit score and can change your ability to qualify for your home loan.
These are a few of the things to NOT do! For more information and all you need to know about buying a home, request a free BUYER’S GUIDE. Contact me here!
Check out my home buying video.
