8 Tips to Keep Your Home Purchase on Track

Once you've found your dream home, made an offer and come to an agreement with the seller on price and other terms, you'll be ready to move forward with purchasing your new home. Here are some important tips to keep your purchase on track and moving forward to a successful closing

1. Use Local Experts.  Avoid using an unknown lending source off the internet. Ask your real estate broker or a trusted friend or family member who they've used and recommend. There are also several reputable lenders advertised our House 2 Home Realty Magazine of Homes.

2. Be Truthful. You may think your lender won’t notice if you overstate your income or omit debts on your mortgage application, but lenders are very diligent when it comes to verifying applicants’ information. Don’t hide information from your lender about child support, alimony, wage garnishments or any other payroll reduction. It’s important to be completely forthcoming, because lenders have ways of uncovering what you’re hiding anyway! You don’t want to be denied the loan you need to purchase a home because you were caught being untruthful.

3. Keep Your Job. The lender may refuse to fund your loan if you quit or change jobs before you close your home purchase. Wait until after your home closes to make any job changes.

4. Don’t Change Your Name. If you’re purchasing a home, do not legally change your name until after the process is over and the home is closed.

5. Put Off Other Big Purchases. While it’s tempting to purchase new furniture and other items for your new home, wait until after the closing. Don’t do or buy anything that would cause a hit to your credit and lower your credit score. Most lenders do run last-minute credit checks just before closing to be sure a buyer’s financial situation hasn’t changed. During this time, do not buy a new car, open a new credit card account, take out a new loan or co-sign on a loan for anything no matter how small. Also, if you significantly increase the balance on any existing cards or deplete your savings, your credit score may drop enough to put your loan in jeopardy.

6. Seasoned Funds. Don’t make deposits into your checking or savings accounts that can’t be explained. If you’re receiving funds as a gift from a family member, be sure and get a “gift letter” stating that the money is not a loan that will require repayment. Also, the giver may be required to provide a bank statement showing a paper trail for the gifted funds.

7. Take Contract & Lender Deadlines Seriously. If the purchase contract or your lender requires you to take action on something before the sale and closing of your home purchase, don’t procrastinate. Provide information and documentation to your lender promptly, schedule any inspections quickly and consider contract deadlines immovable.

8. Seek Advice & Ask Questions. Your House 2 Home Realty broker will be a very valuable resource to you as your go through the process of buying a home. Don’t hesitate to ask questions. He or she will be happy to explain anything or advise you on things you have questions about. Every deal is unique and there are truly no dumb questions!

Remember, Don't Go It Alone. Call 997-HOME! (618.997.4663)