In The News
loan modification dont’s
February 3, 2009 by myhousesaver · Leave a Comment
Things to avoid before buying a home
Don’t make an expensive purchase. Financing a major purchase with a store credit card or even one of your own credit cards could jeopardize your credit worthiness. Using cash to purchase big items can also create a problem because many banks take into consideration your cash reserve when approving or refinancing your mortgage.
Don’t get a new job. A consistent job history certainly helps when you are applying for a new mortgage or a loan modification. It is not required that you stay in a job to be approved, especially if you will be making more money. However, staying employed is most important.
Don’t switch banks or move money around. You will be asked to provide bank statements of your checking account for two to three months along with statements on money market funds, savings accounts, and other liquid assets. A thorough paper trail to document the source of all funds is also required. Don’t make it difficult to follow a paper trail.
Don’t give a good faith deposit directly to the seller in a FSBO (For Sale By Owner) purchase. The FSBO seller may not know that your good faith funds should be applied to your expenses at closing. Get professional advice to know who will hold the deposit or put it in a trust account until you close on the home. Your purchase contract should dictate to whom the funds go should the transaction fall through.
Don’t disregard your lenders requirements. Although you may have been pre-approved for a loan, your work with the lender is far from over. In order to process your loan, you need to meet certain requirements. Your lender will need copies of your bank statements, W2s and other paperwork. It is up to you to provide account numbers as soon as possible. Failure to submit certain qualifying documents could cause you to lose your loan and the financing you need to buy your home.
A new home loan or loan modification are vehicles to provide financing for you to improve your lifestyle. The more information you provide the quicker to application process is completed and the faster the paperwork is at last finished.
