Mistakes Home Buyer Must Avoid While Under Contract
Changing Job While Under Contract
One mistake buyer makes when they’re under contract is like when they change job while under the contract that makes this whole transaction very difficult most of the time when you’re buying a house is like 30 days process however it’s not true with when you are you know under contract for any new constructions or anything
You know where you are buying some even investment property and you if you are changing the job in between you know then you got to inform the lender. Sometimes even the job is more competitive even you know it has more value towards however still I’ve seen the lender getting fishy about the stability of the work.
You are let’s say you have to change a job there is no choice for you then you can communicate with the lender beforehand so that way you are prepared they know the reasons why you are changing a job and that gives them more confidence to underwriter.
Buying Big Stuff While Under Contract
Number two mistake buyer sometimes makes is buying some of the big stuff while they’re under contract. Remember YOUR CREDIT is everything in this whole transaction and also your debt-income ratio because ultimately the lender is giving your loan based on your debt-income ratio if you are buying something in between of the contract you know people think that okay we are pre-approved so it’s not going to matter now however it does matter because you are still under contract.
There are many times even lender checks the credit many times checks that you know the back background especially in the middle of the contract and also before they close so technically they do check the credit multiple times and that’s how they find out if in case you made a big expense in between and that’s what gives them message in case you let’s say you you purchased on your credit card or you open the new credit card account that gives the message that you are increasing your debt and that debt-income ratio may increase and because of that you have a chances of even getting the denial from them.
No new credit cards No new bank accounts No new purchase, not even a car that gives a big big hit towards your credit.
Buyer Doesn’t Share All The Information
Number three mistake I’ve seen some time some buyer makes it see when you are buying a house you got to be very transparent with your real estate professional and the lender because this is a very important piece I did have that experience where a client doesn’t share all the information and You come to know some of the issues like going with the family especially husband-wife and that can create the issue especially in Florida if a husband is buying a house the wife has to sign it so either vice versa so it’s called the weaver of you know accepting uh that the spouse your spouse’s buying a house and you’re not going to claim for it.
Sharing Old Paystubs
The next mistake I’ve seen sometimes buyer making unknowingly sharing the sharing to lender some of the old checks from the old employer so basically, you know Underwriter reviews all of your bank details if whatever you share with them that’s also they’re going to share also the bank statements and everything they’re going to share so if you let’s say as a pay stub you have shared something or maybe you have transferred money from another LLC account which you have not disclosed to them and you have put the escrow from that account.
So that’s a very important piece you whatever you share with them you have in existence also the same thing happened is like one of the clients they share the big paid stuff from old employer and when the underwriter found out that was he was not even working with them so that’s also a big no no like do not share things to them where you do not have a current job. Those things are really really important because underwriters should not lose trust in your file that’s a very important piece you need to take care of when you are with an underwriter.