First time Home Buyers, and even those who haven’t purchased a home in a while, can be a little intimidated by the process – especially if they watch the news, which is saying it is so TOUGH to get a mortgage! It doesn’t have to be overwhelming! There are a few things that everyone who is applying for a mortgage loan should remember:
- Continue working at your current job – if you are due for a raise, or get a call from a head hunter… PLEASE talk to us before changing jobs!
- Stay current on all your accounts, do NOT allow anyone to place a collection on your account. If you get a letter, then make a small payment, even if you don’t feel you owe the money.
- Keep making your rent payments on time, and remember that we will be pulling another credit report 2 or 3 days prior to CLOSING.
- Send us an updated copy of the Contract if anything changes
- Call us if there are any Seller Repair issues
- Do NOT apply for a new credit card to pay for your new refrigerator or sofa, or whatever. TALK to us before making any purchase over $500 between the time of loan application and closing.
- Make any major purchases (Car, Boat, etc.)
- This means that you should NOT apply for new credit or open new credit cards, remember that we will be pulling another credit report 2 or 3 days prior to CLOSING
- Transfer any balances from one credit or bank acct to another – we know that especially around holidays banks start offering to transfer your credit card balance for a lower rate… please, please wait until after closing to do this.
- Don’t wait until closing to pay for a Home Inspection if you are getting a USDA Home Loan
- Make large deposits ($200 or more) that can not be sourced. We MUST document ALL of the money going in and out of your account
- Pay off any charge-off accts or collections
- Take out furniture loans
- Close any credit cards or Consolidate credit debt
- Max out your credit cards, remember that we will be pulling another credit report 2 or 3 days prior to CLOSING
Basically, while you are in the process of getting a new mortgage, keep your financial status as stable as possible until the loan is funded and recorded.
Any number of minor changes could easily raise a red flag or cause a negative impact on a credit score that may result in a denied loan. So, while not trying to intimidate a First Time Home Buyer, there are some things to watch out for! Contact us with any questions you might have throughout the process so that you don’t do anything that may cause you to be denied.
Call Steve and Eleanor Thorne 919 649 5058 if you have any questions! Connect with us on Facebook! We love to work with First Time Home Buyers in NC