So you think once you are under contract to purchase a home, that you are free to do whatever? Think again! There are several things you need to do in order to close on a home, but has anyone ever told you what not to do? Here is a quick cheat sheet of what not to do once you go under contract on a home 🙊!
1) Don't make any large purchases or open up a new credit card.
Once you go under contract on a home, the first thing you want to avoid is opening up a new credit card / taking on new debt. Your lender should have approved you based on your credit score, and debt to income ratio. If you take out more debt, it will throw off all of your numbers and could potentially disqualify you for the loan. Wait until after the closing to make any big purchases.
2) Don't quit your job!
This is a big no no. Even if it is more money, this could throw the lender way off. They will have to verify your income and usually will require a paystub which could delay your closing or potentially cause the seller to terminate the contract all together.
3) Don't hide things from the lender.
If you have a side hustle or some sort of additional income that you plan on using to purchase this home, you will want to tell them. They will find out eventually when they see large deposits of money going into your bank account. Your lender will want to know the money came from.
I'm not sure what makes me happier, the fact that I was able to find 3 GIF's all Office related for this post, or being able to share this awesome info with you. I would say a little bit of both. I love giving value and teaching you all things real estate. What questions do you have for me? Feel free to reach out @ Paul@SoldByPaulLinn.com or 317-629-0070.