We work with many first time home buyers, and folks who have not been in the position of buying a house in a while. After you write a contract, there are some things you can do (or not do) that will make things so much easier with your mortgage loan! The First Time Home Buyer Process is not that complicated.
We don’t want there to be any delays or surprises when you approach your closing date. So here are some suggestions that we go over with First Time Home Buyers in NC – and we figured it could be helpful for most home buyers these days!
- Don’t procrastinate in getting all of your paperwork to your loan officer. You have due diligence dates in your contract, and you want to give us plenty of time to go over all of the details of your loan. You will need to send us your pay stubs for at least one month, a W-2, and at least one bank statement.
- Don’t quit your job. If you are offered a better job, that’s awesome – but if it’s at all possible, don’t change jobs BEFORE you close on your home! Within 72 hours of closing, someone is going to call your employer, and re-verify that you still work there. (Changing Jobs before you buy a house – FAQs)
- Stop using your credit cards – only use debit cards until you close (if possible). Your mortgage application is a “snapshot” so to speak of your financial picture. The goal is to be sure that the snapshot taken at loan application matches the one that will be taken again right before closing.
- Don’t open new charge cards, buy a refrigerator or a new sofa. A new credit report will be pulled right before closing. Your credit picture needs to look pretty much like it did when you made loan application. If you’ve applied for a Sears Card, or a Lowe’s Card – it’s going to show up, and we’re going to have extra paperwork – which is not the sort of thing you want to happen right before closing.
- Ask your Attorney if they are going to order a Survey. As the Lender, we do not require one. If you are close on cash to close, and the Attorney orders Surveys as part of the way they do business, you need to be able to plan for that.
- Don’t make large miscellaneous cash deposits. We’ve had clients sell their bass boat, grandmother’s silver and airplane to raise extra cash before closing. This is all very acceptable; however, we must show that you owned the asset, what it was worth, who you sold it to… there’s a paper trail we must establish. If this is something you are considering, talk to your loan officer. (Documenting large Deposits for a mortgage Loan – FAQs)
- If the home you are purchasing has a Well Water – you will need a Bacteria test for some loan programs you apply for. Mention this to the loan officer, so that they can advise you about what tests will be required.
- If the home you are purchasing is part of a Home Owner’s Association, go ahead and find out if there’s a Capital Contribution required to join the Association, in addition to any monthly dues. This way, if it’s an extra $200, you are prepared for that additional cost.
If you are looking for a home, want to know where to start – or have questions about what to do after you write a contract, and First Time Home Buyer programs – call Steve and Eleanor Thorne 919 649 5058 / or leave us a comment below! I try to answer all of your questions as quickly as possible. You can also find us on Facebook and Google +