Going over Finances

Tips to Getting a Loan to Buy Your Home

 

Your finally found a home to buy.  There are many things to think about while you are in the process of getting the financing completed.

Here is a list of things not to do until after you completed the purchase of your home and been informed that the loan has been funded and your deed has been recorded.

1. Do not change jobs or employment or the in any way change the way that you are paid.  Your lender or mortgage company must be able to verify your source of income. You will want to avoid changing your salary or commission structure or making a job change.  

2. Make sure not to deposit any Cash into your bank account.  If your make any deposits make sure they are in the form of a check or wire transfer which can be traced as to there origin. Large sums of cash will be flagged as unusual.

3. Put of any plans to purchase anything new for home or to buy a new car.  Typically, when you purchase a new car or furniture for your new home they will come with new debt or obligations which may count against you.  New debt will change your debt to income ratios and may knock you out of qualifying for the loan.

4. Keep all your Banking Accounts the Same.  Your lender is going to source and track your assets and funds for down payments or closing cost.  Before your transfer any money from one account to another be sure to talk with your lender.

5. Do not Co-Sign on any Loans for anyone.  If your co-sign on a loan it obligates you to pay the loan off which will again change your debt to income ratio and could make you not qualify for the loan.

6. Do not Taking Out a New Loan or Apply for Anything.   It will Count Against You.  When you have your credit, report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), your FICO® score will be affected. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.

7. Don’t Close Any Credit Accounts.  You may fill like having less available credit will make you more credit worthy.  This is wrong.  The major component of your credit score is the length and depth of your credit history and our total usage of credit as a percentage of available credit. Closing Credit Accounts will have the effect to lower your total available credit amount.  

The Best Advise is to continue what you have been doing and consult your lender before making changes to your financial profile.  Your lender is there to guide your through the process and will be your best source for advice to any changes. 

For more information on the basics or great tips on getting your home sold feel free to give me a Call/Text or write to parkcityrealty@gmail.com   To search for Park City homes or for Park City homes for sale go to www.parkcityhomes.biz Your proven professional - Jim Bradley 801-599-1089