Buying a house can be fun! But if your credit has changed or "Cash" available is inadequate when it's time to "Bring To Closing" - It can be a real buzzkill.
Buyers Be Aware:
- Prequalification Letter, from lender, is based on debts reported at the time. It can be very tempting to indulge in a (credit card filled) shopping spree after going under contract. After all, you picked out the perfect home - it's only natural to desire "tailor-made" furniture that is parallel. Nonetheless, steering clear of additional debt is essential as your credit will be confirmed in the "eleventh hour" prior to closing.
- Make sure the available Cash, reported to lender, IS still available throughout the transaction.
Taking the advise to steer clear of additional debt - you may be tempted to spend some of the Cash instead. If you plan to use those funds to purchase big ticket items (e.g., washer, dryer, silver-plated iguana cage, etc...) let your lender know in advance. If it is agreed that you will put a 10% down payment (with available Cash) - Do not assume you qualify for a lower down payment.
- Avoid telling your boss to "Take This Job And Shove It."
Psyched about the view from your (soon to be) office - you decide to quit your job (of 10 years) before closing day.
Reporting the good news to your lender... "But I will be making $25,000 more a year and get to work from home!"
**********There is static and mumbling on the other line**********
Thank goodness that was only a dream.
If you are considering a career change, at least run it by your lender first. They will be able to indicate whether it's in your best interest - as it pertains to the real estate transaction.
When Buying a Home - Try to Preserve Your Cash, Credit, and Job.
by: Alesha Wilson, M.Ed, Broker/Owner