When buying your new Pikes Peak region home, don’t find yourself pressured at the last minute. Banks are responding to today’s economy with more caution, with means that right up to the closing date you may find some last minute loan application difficulties that can pop up – even to those homebuyers with good credit and plenty of cash.
However, buying a home can be an exciting and fun experience, so take the worry out of closing woes by following this advice:
Be Ready For A Last Minute Credit Check: New rules were initiated by Fannie Mae’s loan quality initiative, which went into effect June 1, 2010, stating that banks and lenders will likely do a second credit check right before closing. Don’t miss any credit card payments or be late on your current mortgage between the time of approval for the new mortgage and the actual closing date. By doing so, you could be putting your new home purchase in jeopardy. Even something as simple as applying for a new credit card could show as a credit score inquiry and reduce your credit score. Definitely not something you want to happen days before closing on your dream home.
No Major Purchases Until After Closing: It’s understandable that you are excited and want to furnish that new home of yours. Don’t purchase, or finance, all that new furniture just yet! Large ticket purchases suggest more debt and more risk. Therefore, banks have been known to pull mortgages when large purchases are made right before closing. This also includes cash purchases, as banks check out your cash reserves when they approve a loan too. Once the keys are in hand, purchase freely.
Hold Off On Big Career Changes: It makes sense that lenders weigh your salary and job stability when evaluating a potential home loan. You may be making a move to a higher salaried job, but, in doing so, your stability can be under question by your bank. This could delay the process, or even have the loan pulled, until you show that your career move is a stable one and guarantees that you can financially pay your mortgage debt. Be upfront and talk to your new employer. By being honest, perhaps something can be worked out to delay your start date.
Don’t Get Caught With Closing Cost Surprises: Don’t put all your cash into the mortgage down payment. By doing so, you may make the mistake of not allotting enough to pay for closing costs. Usually, closing cost are up to 3% of the home cost, but they are active and are subject to change. Don’t assume your closing costs will be a set amount. Instead, anticipate for them to rise and set aside extra to pay for more mortgage rate points or closing fees, if needed.
Buying a new home is a magical time. However, until you sign those closing papers, it can also be scary since your loan is in the hands of the lenders. You cannot anticipate every problem that may come up, but by playing it safe and being conservative and steady, you can alleviate some last minute difficulties. If you are ready to purchase your new Pikes Peak region home with less worries, call The Roshek Group today to find you your new home tomorrow.
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Colorado Living ...Where Dreams Come True
The Roshek Group
719-687-1531
