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No
Major Purchase of Any Kind
Review the article
titled, "Don’t Buy a Car," and
apply it to any major purchase that would create debt of any kind.
This includes furniture, appliances, electronic equipment, jewelry,
vacations, expensive weddings…
…and automobiles, of
course.
Don’t
Move Money Around
When a lender reviews
your loan package for approval, one of the things they are concerned
about is the source of funds for your down payment and closing costs.
Most likely, you will be asked to provide statements for the last
two or three months on any of your liquid assets. This includes
checking accounts, savings accounts, money market funds, certificates
of deposit, stock statements, mutual funds, and even your company
401K and retirement accounts.
If you have been moving
money between accounts during that time, there may be large deposits
and withdrawals in some of them.
The mortgage underwriter
(the person who actually approves your loan) will probably require
a complete paper trail of all the withdrawals and deposits. You
may be required to produce cancelled checks, deposit receipts, and
other seemingly inconsequential data, which could get quite tedious.
Perhaps you become
exasperated at your lender, but they are only doing their job correctly.
To ensure quality control and eliminate potential fraud, it is a
requirement on most loans to completely document the source of all
funds. Moving your money around, even if you are consolidating your
funds to make it "easier," could make it more difficult
for the lender to properly document.
So leave your money
where it is until you talk to a loan officer.
Oh…don’t change banks,
either.
Should
You Change Jobs?
For most people, changing
employers will not really affect your ability to qualify for a mortgage
loan, especially if you are going to be earning more money.
For some homebuyers, however, the effects of changing jobs can be
disastrous to your loan application.
copyright 2000 by Terry
Light and RealEstate ABC |
