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Let’s go SHOPPING!

shoppingWhoo HOO!! You have been prequalified for a mortgage and have an accepted offer on a GREAT home in the Northern Utah area! It’s SO exciting and there’s SO much to buy for this new home!! Time’s running out …. Closing is coming up fast.


Now is NOT the time to incur new debt before you close on your new home. It could just be a deal breaker causing you NOT to qualify for your new home mortgage.

Here are a few things that could be deal breakers for buying a home:

  • Don’t make large purchases.  When you are buying a home you are going to be bringing in new debt.  However, after applying for a home don’t go out and buy a new car or furniture, this could raise you debt ratio and make it riskier for the loan company to lend to you.  Sometimes after doing this, the previously qualified buyer is no longer able to qualify.
  • Do Not Change your bank accounts.  If you have had an account for a while it is easier foe lenders to track and source your assets.  Before you even think to transfer money from one account to the other you should talk with you loan officer.
  • Do not deposit cash into you bank account.  Cash is not very traceable and lenders need to be able to source your income.  Small deposits, which can be explained, are fine, but getting a large lump sum as a gift is not.  Discuss the right way of tracking your assets with your loan officer.
  • Don’t co-sign other loans for anyone.  Once you have co-signed on a loan you are now obligated to that loan.  With the obligation comes a higher ratio.  Lenders will be counting the payment against you even if you tell them you won’t be.
  • Don’t close any credit accounts.  Many clients believe that by closing out credit accounts makes them less risky and that they will have a better chance of being approved for the loan. This is INCORRECT.  The majority of your score is the length and depth of your credit history.  Closing these accounts can have a negative impact on your credit score.
  • Do not apply for new credit accounts. Whether it is a new car or a credit card once you have your credit run by multiple financial companies, this effects your FICO score.  Your interest rate is based on your credit score. The lower the score the higher the rate or you may not be eligible for the loan.

When deciding to apply for a mortgage make sure you talk with your loan officer before you decide to do anything else financially.  Any change in income, assets, or credit will need to be reviewed and all decisions will need to be made in a way to keep your application in the best light.

But not to worry; we’re here to help! Our team of local financing experts are ready to guide you through the home buying process. We are committed to fast, professional, courteous and personal service to help you understand and feel at ease throughout the home buying process. Our trained and certified loan originators specialize in financing homes in the Northern Utah area real estate market. We are prepared to find the right loan program with competitive rates and low down payments for you.

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