Dana Point Home Buyer Tips

12 Feb Dana Point Home Buyer Tips

When purchasing your new home in Dana Point, the actions that you take could severely harm your ability to qualify for a loan.

As a home buyer, never take anything for granted. If you are considering purchasing or doing anything that may effect your credit, you should check with your experienced lender first. The financial decisions that you make may hurt your ability to buy a home.

Below are some tips if you are purchasing a home in Dana Point soon.

1.  Do not make any large purchases that will increase your debt (cars, furniture, anything that you may put on credit).

2.   Every dollar that is deposited into your bank accounts must be 100% documented – no exceptions. Your lender may be required by the underwriter to see proof of where these funds came from as “gifts” or “loans”, which may cause your loan on your new house to be denied.

3. Call your lender if you expecting to have a career change. Your employment will be verified by your lender several times and must be deemed reliable, stable, and at the rate of income you claim.

4. Opening new accounts or closing current credit card accounts can have a negative impact on your rating and FICO scores.

5. Gift funds If allowable for your down payment or closing costs, the “Donor” will be required to provide a bank statement proving your “Donor” has the ability and did gift the money to you. Prior to transferring any money, it is very important to speak to your loan officer for specific instructions on “when” and “how” to transfer funds to your account.

6. Buying a new home can be a long process and there can be delays. There may be changes in your purchase contract or underwriting guidelines that could extend the close of escrow date. Final documents you pack away may be needed during the loan process – plan accordingly and do not pack to soon!

In our current lending environment, you must take every precaution to eliminate all doubts a lender may have about your credit and ability to purchase a home in Dana Point.

If you communicate with your home lender and Realtor throughout the entire escrow period (30-60 days), your Dana Point home buying experience will be a fun and exciting time, not something that keeps you up at night.