Buying a Home

Congratulations! You finally found the house of your dreams. You made a bid, had it accepted by the seller, and went through the mortgage application process. It looks like you’ll qualify. The closing is only weeks away…if at all possible, steer clear of the following until AFTER you have gone to settlement.

DO NOT TAKE ON NEW DEBT

The temptation is strong. There are so many big purchase people potentially want to make in connection with a move; appliances, window treatments, etc. When you add to this fact that, today, everyone offers easy terms and no money down well, why not just do it? Answer: because you will change what the industry calls your “back-end ratios” (the relationship of your income to your debt).

DO NOT CHANGE JOBS

If at all possible, try not to make a career move during the time between your mortgage application and the closing on the home you are purchasing. But, you ask, “What if it is a BETTER job, for MORE money, in a DIFFERENT field?” Still, try to wait until AFTER closing. One of the factors mortgage companies consider is length of resent employment; they are partial to stability. At the very least, changing jobs initiates the need for more paperwork, and maybe a delay in closing.

DO NOT PACK TOO SOON

It’s important to remember not pack to soon; bank statements, tax returns or other important paperwork the lender may require. More than one buyer has had closing delayed while they hurried out of closing for additional funds because the checkbook was packed.

DO NOT LEASE A NEW CAR

This should go under the general heading of “no new debt.” As with any debt, this will change your “back-end ratios”, and may cause you not to qualify for your mortgage.

IN SHORT, do nothing that negatively impacts your ability to qualify for your mortgage loan, or initiates a new round of paperwork.

These five suggestions are merely that suggestions. They are offered as cautions. Keeping mind that mortgage application is an on-going process that can take into account