In the past few years the housing market has become difficult and most especially for Home Buyers.
Unfortunately Buyers do not always realize the implications of some of their financial and spending decisions.
Those spending decisions, however necessary can have a huge impact on your financial picture when you go to the bank to get your financing arranged.
It isn’t a great news to find out you can’t get as much of a mortgage as you thought or even worse, no mortgage at all.
Our Smart Home Buyer Plan – aims to give Buyers the best information and resources to give you every advantage when buying a home, as well as saving you some money.
The Ten Commandments is part of the Smart Home Buyer Plan and just one of the steps we use to put you in an ideal position to buy your first home.
1 – Change jobs, become self-employed or quit your job
2 – Buy a car, truck, snowmobile, boat, motorcycle or van – unless you are going to live in the van
3 – Use credit cards excessively or let your current accounts fall behind
4 – Spend money you have put aside for closing costs
5 – Omit debts, liabilities or loans from your loan application
6 – Buy furniture, appliances or big ticket items like electronics before you close on your new property and move into your house
7- Originate any inquiries into your credit – from any other parties but your Lender (hurts your credit score)
8 – Make large or cash deposits without checking with your Mortgage Broker or Lender.
9 – Change bank accounts or close accounts you have had for a long period of time
10- Co-sign a loan for ANYONE, or anything – loan anyone money, be a guarantor on a loan or a lease
The list above is pertaining largely to Home Buyers who want to buy a house in the next 12 months (24 if they’ve changed jobs).
And most especially Home Buyers who have an accepted offer on a property, whose financing has been approved but have not closed on the property and moved in.
These Ten Commandments are issues that crop up the most often.
These issues can affect the ability of the Home Buyers to get approved for a mortgage, affect the amount they can get approved for or affect whether the deal closes or not.
Keep in mind – you find a house, make an offer, its accepted and Yayyyyy!
However, any financing that a Home Buyer requires is based on their financial situation at the time the mortgage is approved.
But the mortgage is not actually given to you until closing day, which could be 30-90 days away, when you transfer the funds and take ownership.
In other words, when the Lender says you are approved and can waive the financing condition in your offer – it is approved then based on your financial situation AT THAT TIME.
This approval includes the amount of money in your savings and other bank accounts, credit card debt, credit report, loans or any other financial obligations you have at that time.
BUT – Just prior to the closing date, the Lender will take another look at your financial situation to ensure nothing has changed.
So, its important to be aware of this and not change your financial picture before the closing date.
Once you are approved for the mortgage, and until you close on the house and move in, You CANNOT spend any large amounts of money.
Do not apply for loans, purchase a car etc., until after the sale has closed on your new house and you have moved in. Then go crazy! (well – not too crazy).
Many Home Buyers have made the mistake of thinking that since their mortgage was approved, then everything is good, not realizing that the Bank or Lender will check again.
Banks and Lenders do a final quick credit check on a Buyer, just before the closing date.
Unfortunately there can be some nasty surprises for an unaware Home Buyer and sometimes some last minute scrambling right before a closing date.
Are planning your future and on track to save money towards your first home?
Are you looking for ways to pay your mortgage faster so you don’t give the bank more money than you need to?
Get in touch and we can offer some great methods to save faster and pay your mortgage down quicker with our Smart Home Buyer Program.
A few quick and painless changes and you could save thousands of dollars off your mortgage loan interest.
Reach out anytime – we are always here to help!
For more tips visit our Smart Tips page.
Check out our Top 6 Things That Make a House a Lemon or Top 5 Things That Buyers Freak Out About blogs.
Or Discover more about Our Communities here.
If you need advice about a particular issue or about home inspections, just reach out to me. See you soon!
Real Estate Smarts
Christine Domina
416-873-4747
Peterborough County &
Surrounding Areas
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