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Things Not to Do Before Purchasing a Home

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No Major Purchase of Any KindRichard Woodward Mortgage Homes loans

Prior to the purchase of a home, you don’t want to create debt, or you may find that your loan does not go through.  Your credit is not only checked when you are preapproved for a loan, but, at the closing of a loan, and it is essential that no major purchases have occurred.  This means, no vacations, no new car, no new furniture and so on.

Don’t Move Money Around

One of the things a lender is concerned with when they review your loan package for approval is how you will fund the down payment for the home and its closing costs.  Your lender will likely require that you provide documentation for the last two or three months of your liquid assets.  This will include paycheck stubs, 401K and retirement accounts, mutual funds, stock statements, certificates of deposit, money market funds, savings accounts, and checking accounts.

This is not a time to move money between account as large withdrawals and deposits will show and the mortgage underwriter will most likely request a paper trail of all deposits and withdrawals. You may be asked to provide deposit receipts, cancelled checks, and other data which pertains to money movement.  This becomes quite tedious, but, is a process that protects the lender from potential fraud and a requirement of most loans.  Don’t move money around until you talk to a lender, as this impacts difficulty for the lender to properly document.

Don’t Change Banks!

What about A Job Change?

Most often, change in employment will not affect your ability  to qualify for a mortgage loan, especially if the income is the same.  However, there are cases where it could mean the difference of your loan.

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