Don’t go on a spending spree using credit if you are thinking about buying a home, or in the process of buying a new home. Your mortgage pre-approval is subject to a final evaluation of your financial situation, MEANING: you qualified for a loan based on the financial situation that your loan officer analyzed when you first applied. You need to have the same income, credit score and debt load by the time you're at the very end of the loan process as when you started.
Every $100 you pay per month on a credit payment could cost you about $10,000 in home eligibility. For example, a car payment of $300/month could mean that you qualify for $30,000 less in a mortgage.
Even if you have accumulated enough savings, you should consider not making any large purchases until after closing. The last thing you want is to know that you could have purchased a new home had you curbed the urge to spend.
With these general rules in mind, Lisa provides this funny but true list of 10 Rules to follow when Qualifying for a Real Estate Loan:
The Ten Rules When Applying for a Real Estate Loan
1. Thou shalt not change jobs, become self-employed or quit your job.
2. Thou shalt not buy a car, truck, van or boat … or you may have to live in it!
3. Thou shalt not use charge cards excessively or let your accounts fall behind.
4. Thou shalt not spend money you have set aside for closing.
5. Thou shalt not omit debts or liabilities from your application. For example; alimony, child support, IRS liens, judgments or open lawsuits.
6. Thou shalt not buy appliances for new home until you actually own it.
7. Thou shalt not originate any inquiries into your credit.
8. Thou shalt not lie about residency or marriage status.
9. Thou shalt not co-sign a loan for anyone.
10. Thou shalt not make large deposits without first checking with loan officer.
Contact Lisa to analyze your financial situation or discuss your changing income, debt or cash deposit strategy; she'll give you a free, no-obligation full analysis to help you along your journey.
"Sand to Sea Properties, Inc. provided stellar customer service from beginning to end. Throughout the entire process Frank and Lisa guided us and were always available to answer any question or concern, and were prepared for any curve ball throughout the home buying process. Their expertise in real estate became such a comfort to know we were working with top notch individuals who were not just incredible at what they do, but also enjoyable to be around. We highly recommend Sand to Sea Properties for your home buying or rental needs."
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