It seems fair to say the real estate housing market is as hot as the weather. We often hear stories of attractive homes getting snatched up almost as soon as they hit the market. It’s also common in these circumstances that there will be multiple offers for the same. So it’s really important if you are you planning to purchase a new property in the near future, to place yourself in the best possible competitive situation. This includes eliminating any possible reasons that a lending institution may choose to reject and delay your loan request.
One suggestion? “Be Boring!”
Many home purchase transactions can get bogged down unnecessarily. Some wind up not closing at all because the buyers engage in activities that seem appropriate at the time, but wind up altering the prospect’s financial standing. In the current lending environment, it’s good to remember that anything that is likely to change a buyer’s credit status in any way is likely to attract scrutiny … at least until it’s impact is clear.
When it’s time to start planning your home purchase, here are a handful of “boring things” to keep in mind:
1. Don’t apply for credit
2. Don’t conduct money transfers before checking with your mortgage company
3. If at all possible, don’t quit your job or transfer to a new one
4. Don’t make cash deposits or pay earnest money with cash
5. Don’t pay off any loans or close out revolving accounts unless you’re told to
Sanford’s Team Move Blog has a great post that goes into much greater detail on the do’s & don’ts of credit planning prior to closing. To discuss mortgage strategies in greater detail, please contact Team Move in Sanford at 919-777-0114.