Offer accepted! After looking high and low you have finally found your Bay Area dream home. Now there are a few more steps before the keys are turned over to you and it is crucial that you pay attention and avoid doing the following:
- Do not buy a new car. For some that may makes sense but not everyone understands the ramifications that buying a car can have on your Danville mortgage, San Ramon home loan, or Alamo refinance loan approval process. Even if you have loan approval on your new Bay Area home wait until after you have closed because lenders will run a last minute credit check before signing off and it will cause a delay in the ability to close.
- Do not quit your job or start a company. If possible try and avoid quitting or changing jobs in the middle of your new home purchase or refinance loan approval process. Lenders will verify employment more than once throughout the transaction and the worst thing that you can do is leave your Bay Area job right before the lender is ready to sign off on the . The lender will call your Bay Area employer to verify you are still working there. Quitting your Bay Area job can delay or even void the ability for obtaining the loan for your Pleasanton home. Any changes should be promptly told to your local Danville loan officer.
- Don’t transfer large sums of money between bank accounts. Being able to provide a paper trail is an extremely important when you are refinancing or purchasing your Bay Area home. Lenders will request a paper trail for any and all large transfers of money. They want to make sure that you are not getting gifted a large sum of money to purchase your new Bay Area home. If you do transfer money between accounts be prepared to provide copies of the bank statements that prove where the money came in and out of.
- Don’t accept a cash gift without the supporting documents. When you are purchasing your Dublin house of Blackhawk home and receiving a gift from a relative it is important that you have the gift letter form filled out before transferring the funds. You want to make sure that everything for your Bay Area purchase is documented correctly.
- Don’t forget to pay your bills. This is more important than ever when you are going through the refinance or purchase of your Bay Area home. One late payment could affect your credit score which in turn can affect the rate you get. One thing that buyers in the Bay Area may not be aware of it that before a loan funds and closes the lender will do one last run of your credit to make sure there hasn’t been an adjustment to the score. That is why missing a payment could be detrimental to the approval process.
- Don’t open a new credit card. I promise that 20% off those new pillows at your local Bay Area home store is not worth risking the approval of your loan. As previously mentioned, the lender runs your credit once more before funding your Bay Area home loan and if you have opened a new credit card and established new debt this can affect your credit score and you could then lose your rate and your Bay Area dream home.