When you are on the market looking for a house to purchase. You want to have an effortless, non-stressful, and a quick transaction.Here are 3 things you should avoid doing before and during buying your perfect home. These are the following:
Don’t shift your finances around before getting the loan.
When a lender pre-approves you, the approval is based on the current state of your finances. You want to maintain that state. Wait to make any financial changes after you have gotten your mortgage. If a lender sees you moving money around various accounts, they will need you to show a paper trail for this.
Don’t make large deposits into your bank account
Lenders refer to the two month
period as “seasoning,” and consider it a demonstration of stability and your ability to cover the loan payments. Whenever you make a significant deposit or start doing unusual or unexpected things with your finances before the home purchase, the lender may begin to scrutinize the loan and might back out. This shows that the borrower may be unstable and could be a high risk candidate for the lender.
Don’t overextend yourself.
Some buyers make the mistake of really overextending themselves before the purchase of their home. They end up becoming a slave to their wants. This will cause the homebuyer to not have the funds to bring to the scheduled closing date. Thus, causing the lender to postpone the home purchase or cancel it all together.
One should avoid shifting your finances around, making large deposits in your bank accounts and overextending yourself before and during applying for a mortgage. Following what not to do before buying a house will cause you to have a quick and smooth homebuying experience. Want to know what other things to avoid when buying a house? Fill out your information on the following link https://www.nicoleburkehomes.com/contactus/