What Not To Buy, Before Closing On Your Home!

By mark-slade January 18, 2016

You are excited that you a couple of weeks away from moving to the burbs and your endorphins are kicking in! What do you do? You decide to buy your new living room and dining room furniture from West Elm you have been salivating over; then you go out and buy a car so you can be a true suburban home owner.

Sounds like a good plan, right? WRONG! Unfortunately, this could have you living in your own car as these purchases are significant and can throw your debt to equity ratios out of whack and and your mortgage, while initially approved, may now be denied.

Well, this could end up being called: Poor Mortgage Behavior, Defined.

Keeping “good behavior” in mind, here are 8 things you should absolutely not do between your date of application and your date of funding. Any one of them could force a revocation of your mortgage approval.

Ignore these rules at your own peril.

1. Don’t buy a new car or trade-up to a bigger lease

2. Don’t quit your job to change industries or start a new company

3. Don’t switch from a salaried job to a heavily-commissioned job

4. Don’t transfer large sums of money between bank accounts

5. Don’t forget to pay your bills — even the ones in dispute

6. Don’t open new credit cards — even if you’re getting 20% off

7. Don’t accept a cash gift without filing the proper “gift” paperwork

8. Don’t make random, undocumented deposits into your bank account; and that’s it.

Now, you may find it 100% impractical to have follow these rules to the letter. I know that.

For example, if your car lease is expiring, you have to do what you have to do. Renew the lease. Before doing it, though, check with your loan officer — spreading your lease over 60 or 72 months may be better for your debt-to-income (DTI) ratio.

The same goes for accepting cash gifts from parents. There’s a right way and a wrong way to accept a cash gift for a purchase and if you do it the “wrong way”, your lender may disallow the gift and deny the loan.

These are just 8 of the behaviors which could sabotage your loan. There are more, of course, and your lender will help you identify them.

Need solid lender advice at the start? Let me know as we have a solid list of lenders, ranging from mortgage brokers to mortgage bankers to loan officers that work for mid-size banks and finally loan officers that work for the Big Banks.

Mark Slade Keller Williams 917.797.5059 Good Homes

Selling a Maplewood/South Orange/Millburn/Short Hills area home involves many steps and having an experienced Maplewood New Jersey Real Estate Agent and Realtor®, specializing in the Bedroom Communities of New York City in Essex/Union County— Millburn, Short Hills, Montclair, West Orange, South Orange, Livingston, Maplewood, Springfield, Summit, Madison, Chatham, Scotch Plains, Fanwood, Cranford and Westfield–by your side will make the transaction run a lot smoother. I would love to be your Maplewood/South Orange New Jersey Area Real Estate Professional! I assist both buyers and sellers in the Bedroom Communities of New York City, mostly served by NJ Transit’s Mid-Town Direct Train Lines, offering commutes of 45minute or less to NY Penn Station, with either the purchase and or sale of residential real estate.

As an Accredited Buyer’s Agent (ABR), I have received special training to guide and educate you through the entire home buying process. From start to finish, I listen to your needs and desires in what you would like and take the information you give me to find you home. My GO-TO team can provide you the best in Real Estate advice with regard to attorney choices, Home Inspectors and Mortgage Loan Officers

As your Maplewood/South Orange/Millburn/Short Hills/Essex/Union County New Jersey listing agent I am well versed on as your local expert in all things in the Maplewood and South Orange area Real Estate Market. You can expect personalized service that includes a detailed consultation on how to best position your Mid-Town Direct home to be competitive in today’s market with training to provide my clients with an in-depth Advanced Comparative Market analysis, and advice on staging. As my office’s technology officer as well as both a Zillow Platinum Premier and Trulia Premier agent, I use the latest and most up-to-date marketing methods to get your home in front of as many buyers as possible. Being your New Jersey Real Estate Agent and Realtor ® not only involves just finding the home or selling the home, but being your guide, negotiator, advisor and advocate and making sure that your needs and goals are met. Being your New Jersey Essex/Union County area Realtor® (with a little bit of Morris County thrown in for good measure) is one of my truest passions, and “Helping You Find Your Dream Home” is my number one priority.

Mark Slade

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