What NOT to Do During the Home Buying Process

T

he top four deal killers that lenders do not want to discuss in the middle of a transaction:

 

Changing or quitting your jobs.

This one is an absolute deal killer, particularly if you are going from being a W-2 employee to being a self-employed borrower. This includes 1099 income. And the reason for this is we as the lender now have to have two years of tax returns to substantiate that income. Please do not do this in the middle of the process.

Getting married or divorced.

This is not a conversation that we want to have with the client a few days before closing or, God forbid, at the closing table. The reason for this is Texas is a community property state. And so if you have now decided to get married, your new spouse, all of their debts now have to be included on your loan application. They have to be added to the title. This can be an absolute nightmare. So please, if you’re even discussing or thinking about getting married, discuss that with your lender in advance.

New Purchases

Acquiring new debt or cosigning for anything during the loan process is a huge no no, please. Again, if you’re even thinking about buying new furniture, a new boat, anything like that, wait until after you’ve purchased the home. And the reason for this is that we would now have to count this in your debt to income ratio, and it can completely blow up a transaction.

Don’t Spend Your Down Payment!

Lastly, spending your down payment or closing costs money on anything other than your down payment or your closing cost is not good. We have seen this all too often where people decide that it’s more important to buy that furniture or a new car than get to the closing table.

We honestly don’t care what you do the day after closing, but until the closing table, I care a lot. So at all costs, let’s avoid at least these four things. And if you’re ever in doubt, please call first before you do these so that we have a nice smooth transaction.

We honestly don’t care what you do the day after closing, but until the closing table, I care a lot.

Bethany Ashby

 

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