When looking to buy a home, you probably know that it is a good idea to be pre-approved for financing. If you are focusing in Rocky River, Lakewood, Fairview Park and Bay Village the good homes are selling fast. So having your pre-approval handy is an important detail.
What you may not know is that there are things that you should be doing even after loan pre-approval to avoid any surprises moving forward.
Suggested tips include…
- Keep records: Keep all of your pay stubs, bank statements, and other financial information handy, especially if you do not have electronic access to them
- No new debt: Do not open new credit accounts, incur additional debt, or authorize additional credit inquiries. If for any reason you must do any of these, be sure to discuss it with your mortgage lender first
- No cash deposits: Do not deposit any undocumented funds into any bank accounts (e.g. cash). All deposits to your accounts must be verified during the loan approval process, so contact your lender before making any non-employment related deposits
- No material changes: Avoid making any material changes to your financial situation such as job changes, asset liquidation, or additional debt
- Call before making an offer: Before writing any purchase offers, contact your lender to review estimated payments and funds necessary for closing for that specific home. That way, if your bid is successful, you will know in advance exactly how your financing and closing will look
Also, if your loan pre-approval is more than 90 days old, you should contact your lender to have it renewed. Changing guidelines and/or credit changes may make your old pre-approval inapplicable to your current situation, so it is best to keep your qualification officially up-to-date.
For more information, contact Steve Weixel, Finance Manager with Howard Hanna Mortgage, at 440-895-3139.