Buying a home? Avoid these common mistakes BEFORE you buy.

young home buyerAvoid these common mistakes that homebuyers make that could prevent you from obtaining a loan.

Moving is stressful! I want the loan to be easy and I CAN make it easy for you. If any of the below bulleted items pertain to you please let me know as soon as possible so we can work around the issue before it comes up during the loan process.

Reminders

  • Please do not apply for any new credit.  A common issue I see is when home buyers are near closing and they need appliances.  They go to Home Depot, Lowes etc and are offered 10% off if they apply for a store card.  This is a loan killer!  Lenders are required to check your credit right before they wire the money so wait until the keys are in your hand before getting appliances.
  • Apply for new credit and you may no longer qualify for the mortgage payment.
  • Do not take unpaid time off of work if you can avoid it.  We need you to save as much cash as possible during the process
  • Don’t let your bank account statement ever show a negative balance or NSF even if you have overdraft protection
  • Continue to pay your rent the same way you do now. Do not let anyone else pay your rent for you.
  • No large deposits into your bank account.  All deposits (other than payroll direct deposits) must be explained in a letter.  All large deposits (anything over 10% of your monthly income) must also be sourced, meaning copy of the check front and back along with a letter explaining what is was for.
  • If you have cash on hand please do not deposit it into a bank account.  Pay miscellaneous bills with it instead.
  • No major purchases and no job changes

If you have to do one of the above please call me first so I know about it and we can make sure it is done properly to avoid a loan denial.  judy.k@sierrapacificmortgage.com 757.620.8698

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