Jun 23, 2010

Fatal Mistakes to avoid before closing on your new home

Once you've gotten your dream home under contract, several things must happen quickly. Your agent should assist and guide you through the option period, escrowing funds, inspections, appraisals, surveys, etc. But it is your job as the buyer to secure your lender quickly. And when I say quickly, I mean within a day of signing the contract for the property you intend to purchase.

Two big mortgage changes have occurred in the past few months that can cause huge headaches for buyers. And since most home purchases are financed, this is becoming a big issue.
  1. Lenders are taking longer to get a loan closed. If you wait a week to apply for your mortgage, you're asking for trouble. If you can't close on the property by the closing date in the contract because the lender hasn't completed the underwriting, then it's your fault. You may loose the property you are trying to purchase along with your earnest money.
  2. Lenders are now running an additional credit report on the buyers just prior to closing. Sometimes its the day before closing. So if you've made purchases on credit (like new furniture or appliances) or had an increase in credit report requests, it could cause major problems.
When you're buying a house, please, please don't accept the store credit card to save 10% on your purchase at the Gap. Don't test drive a car (they often run your credit). Don't buy the big screen TV. Additional inquiries into your credit or additional dept can end up costing more for your mortgage or cause your mortgage to be rejected. Thus causing you to loose that dream home.

[where: 75230]

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