Whether you’re a first time home buyer or this is your third or fourth time through the home buying process, buying a home can be both exciting and slightly terrifying. After all, it is the biggest financial decision that most people ever make and the last thing you’d want is to mess it up somehow. You may have gotten pre-approved, found a home you love, and made an offer. But if you want to avoid messing up the transaction, you will need to be extremely careful until the sale has closed. Follow these tips from your friends at GVC Mortgage to avoid getting declined or having to watch your interest rate rise!
1. Do Not Quit Your Job
You were pre-qualified by your lender based on your job with your current employer, and any change to that standing can affect your loan. This includes retiring or becoming self-employed. Even if you have signed loan documents, the lender can still refuse to fund your mortgage. Signing the contract does not force the lender to go through with the loan. However, if you lost your job, your loan will be put on hold until you can regain employment and provide an offer letter plus a paystub to prove your new income.
2. Do Not Finance Anything
As you plan to move into your new home, you may find that you need to make some big purchases to fill it. However, financing things like furniture, appliances, or even vehicles can increase your debt-to-income ratio negatively. Unless you can afford to purchase these big items in cash, do not buy them until well after your home sale has closed.
3. Do Not Make Large Deposits into Your Bank Account
This one may seem a little backwards; however, lenders are looking for stability above all else. Large amounts of money that appear suddenly in your account makes lenders uneasy. In fact, they prefer your balances remain largely the same for two months. Whenever you make a significant deposit or start doing unusual or unexpected things with your finances before the home purchase, the lender may begin to scrutinize the loan and might back out.
For more tips or help with the home buying process, contact our team at GVC Mortgage at 317-564-4906. As a local Indianapolis, Indiana, company, we build relationships with home buyers by walking with them through the entire loan process!
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