There are five things that homebuyers can do that will kill a transaction entirely? Find out what to avoid right here.
Today I’ll share with you five homebuyer mistakes that can kill a transaction—if you want your deals to stay alive, avoid the following:
1. Changing jobs, getting fired, or quitting. When you get to the end of a real estate transaction, it’s important that you still be able to afford to buy the home. The banks don’t want to see a borrower at a new job out of fear that the employer or the borrower will have second thoughts.
2. Making big purchases. Don’t buy expensive things like a new car, boat, furniture, or appliances before your transaction has been closed. Your pre-approval is based on your debt-to-income ratio, and even making a small purchase could change your numbers. Wait until you get the keys to your new home before making these kinds of purchases.
3. Applying for a new credit card or any credit inquiries. If you’re shopping for a lender, it’s okay for them to pull your credit—those inquiries can be explained. But once you lock into a loan, you don’t want any other changes on your report.
4. Making large deposits into your bank accounts. All money in and out of your bank account needs to be verified and sourced for the last few months. You can’t take money from under your mattress and put it in your account to purchase a home. You need to be able to show exactly where that money came from because the bank needs to be sure that you didn’t borrow money from someplace that you now have an additional debt to.
5. Falling behind on payments. During the escrow process, it’s more important than ever to show the bank that you can and will make all your debt payments. Paying a bill late could be a red flag that could cause the lender to decline your loan at the last minute.
If you have any questions about the homebuying process or suggestions of topics we could cover in future posts, don’t hesitate to reach out to me. I look forward to speaking with you soon!