Closing day is near, but you may not get the house?…Many buyers have been in this position, either by the fault of their own doing, or when unfortunately were not warned. When purchasing a home, there is a process that this completed by the lender so you can, hopefully qualify for a loan. It all starts with a loan pre-approval, whereby your credit is checked, proof of assets are requested and your employment is verified. Also, besides having your credit looked into, there are other debts that you may have which may be looked into further, too. If you say you have funds for a deposit, they should be available. You should not be taking out a loan or running up your credit cards to get it. This will be used as additional debt against your income. In addition to income, the lender requires the history of where other funds may have come from if deposited in your bank accounts. These funds could have been from another purchaser that may not necessarily on the loan application with you or may be considered as a gift from a family member. There are rules regarding these situations, so always keep a paper trail. After verification, your file will now go through an under-writing process. This is when all information that has been submitted with your loan application is checked and re-checked to ensure you are a good candidate for the loan. Now the fun part begins…wrong! This is not the time to start purchasing furniture, buy another car, or run up your credit. Why you ask? Right before the closing date, your file will go back into under-writing for a review. If there had been changes which negatively impact the prior information given and cannot be reversed…guess what? No Loan..No Home! Don’t be fooled by the “0% interest with no payments for a year.” That entire additional debt will still be held against you. Lastly, make sure your stay employed at your current job. You don’t want to switch employers before the closing, as a history of employment is still required. It is also just as important to verify all requirements with your lender; Each may differ from the next. Let’s chat, so that we can discuss the lending process and what needs to be considered when purchasing a home. Contact me at 732-995-5609 / NJHomesbyRoslyn.com. If all is in check, you will be unpacking in no time…and yes… you can then order that new furniture!!
December 23, 2018
What Not to Do When Buying a Home
by Roslyn Sibilia