First time home buyer: What can go wrong in a transaction when buying a house?
You finally found your dream in in Phoenix, Arizona. Your Realtor worked hard and had negotiated the best price and terms on your behalf. Your home inspections are completed and seller had agreed to repair all the disapproved items that you requested. Home appraisal also completed and the appraised value support your purchase price. The escrow process has gone through smoothly at this moment. So, you talked to yourself, I finally get my dream home! Not so fast! The following actions may seriously impact your closing. Always remember, your dream home only is yours after the property has been recorded with the county with your name!
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Changing jobs
A job change may result in your loan being denied, especially if you are taking a lower-paying position or moving into different field. Do not think that you are safe because you had provided all the pay-stubs to your lender. The lender may call your employer to re-verify your employment status just prior to funding the loan.
If you have and must change job during the escrow process, talk to your lender and your Realtor immediately once you found out the news.
Making any large purchases
I just found my dream house, let go shop for furniture and appliances or maybe a car for the new 3 car garage. That’s a no no. A major purchase that requires a withdrawal from your verified funds or increase your debt can result in your not qualifying for a loan. A lender may check your credit or re-verify funds at the last minutes. So avoid the purchase that could impact your loan approval. Start shopping only after your got the house keys.
Opening new credit card or store card
When you opening new credit card or store card, the institution will run your credit check. You may already know, every time someone pull your credit, it will affect your credit score. This may disqualify your loan, especially your credit score is at the border for the particular loan qualification.
Paying off existing accounts
If your loan officer advises you to pay off certain bills in order to qualify for the loan, then follow the advise. Otherwise, leave your accounts as they are until your escrow closes.
Switching bank
After the lender has verified your funds at one or more institutions, the money should remain there until needed for the purchase. It is advised not to withdraw and deposit lum sum of money during escrow, especially cash. If you must do that, make sure you have proper documentation to prove and inform your lender immediately.
Lender most probably will ask for latest bank statement for the last 2 months. Once you provide the statements, keep the account as it is without big withdraw or deposit if possible.
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