Once you’ve found your home, put in your offer, and started the loan approval process you may be tempted to start purchasing items for your new home whether a couch, new blinds, appliances, etc. however, by doing so, you may end up losing your home completely. During the buying process there are a few things that you should ensure to avoid trying and ensure that there are no issues with your final loan approval, and ultimately close escrow on your home.
Applying for New Credit Cards/Loans
It’s no secret that you need to have decent credit to purchase a home, however, regardless of how pristine your credit may be, you should never apply for new credit of any kind when going through the home buying process. Your lender will require proof of your current credit accounts, and by applying for a new credit, you could risk losing your loan approval, or no longer qualify for the loan due to a recent drop in your credit score.
Accepting a New Job
Even if you’re offered a new job, whether closer to your new home, a higher paying job, your dream job, etc. you should never accept a new job until after you have closed escrow. Many people believe that if you’ll be making the same amount, or even more at the new position it’s safe to make the transition, however, many home loans are approved not only based off of your income, but could also factor in employment length as an approval requirement, and thus, by taking a new job, you can’t show the stability or minimum time requirement at your place of work which could result in your final loan approval being declined.
Making Large Deposits
Oftentimes deposits seem as if they’re safe as it is boosting the funds you have available, however, if you can’t explain where the deposits are coming from and provide a clear paper trail, these deposits could end up disqualifying you from your loan approval as you are subjecting unexplained income in your accounts.
Making Large Credit Purchases
It’s easy to think that you can purchase items on credit as it doesn’t change your immediate financial situation or take away from your needed funds to purchase your home, however this isn’t true. Large credit purchases, even if the items are for the home, will increase your revolving debts, can show signs of irresponsible spending, and just like the scenarios above, could result in your loan being denied vs. approved.
If you’re currently searching for a new home, are ready to sell your home and need a qualified seller’s agent to assist you or if you have any further questions regarding Arizona Real Estate, please feel free to contact our officeat any time.