by Michael H. Wasserman, Attorney at Law
A must read from Broderick Perkins over at Realty Times for all home buyers who want to use mortgage financing. A shocking number of folks manage to sink their own ships by making one of these four mistakes along the way.
- Do Not make random, large, undocumented cash deposits, transfers, or withdrawels - Your lender is going to see these on your bank statements and unless you can explain / prove where the money came from / is going, you are at risk
- Avoid Big Purchases - Resist the temptation to buy a new car or furnishings for your new home until after the closing. It will show up on your credit report, lower your score, and scare the bejeezus out of your lender.
- Pay your Bills - Harken back on the advertising slogan - Just do it. Even if you want or need to dispute the charges with your creditor. Timing is everything and now is not the time to slip up. Credit scores man. They mark down for late payments.
- Do Not open a new credit line or account (and as Perkins notes, even the one with that sweet o% interest teaser). You will get plenty of credit offers once you close. Trust me.
- Keep your day job, (don't give it away). OK, you cannot always control for this one, but do not take chances by switching employers or switching industries before the closing. Your lender's underwriter has evaluated your loan based on your current job and earnings. Not on what you hope to make, or what you want to do, going forward
Other mistakes buyers make here? Please do share.
Realty Times - How to Keep Your Mortgage Approval Approved