Many areas of the United States are seeing a shift towards a seller’s market. In a seller’s market, homes for sale may receive multiple offers and are often sold in less time. Home sellers get excited at that news, but if you are trying to purchase a home, it may make competition a bit tougher. If you have been searching for a home and have finally settled on one that you love, don’t delay on contacting your lender, or you may miss out on the home of your dreams. Interest rates have been reduced to historic lows allowing you, the home buyer, to get more home for the same amount of money, which sounds fantastic. However, if you do not “lock” in your rate and then follow through with providing the necessary paperwork in a timely manner, you could lose your opportunity. More than ever, now is the time for you to know the rules and play to win in the housing and lending market. If you are wondering about how you can make sure you are doing all you need to qualify for your loan and your home, contact me or consult the following list.
- DO get your paperwork in time. Whether you are asked for a letter of employment verification or 27 pages of bank statements, do not delay in submitting these documents to your lender. Any delay can result in your loan taking longer than necessary, making the seller potentially question your ability to purchase, especially when back up offers have been submitted.
- Do not encourage the seller to begin any construction work until after the appraisal, even if your inspection warrants changes being made. An appraiser could see the hardhats and debris and devalue the property. Wait until AFTER the appraisal is complete to request repairs OR agree to do the work yourself once you own the home.
- Do not buy a new car or new furniture or go on a celebratory shopping spree until your escrow has funded! Credit ratios are VERY important at this time and if they become out of balance or new credit is extended, it can make you less likely to qualify for your home loan. It does not matter if the offer is ZERO percent interest… it still affects your credit line.
- DO pay your current financial obligations. During the busy home buying time, it can be easy to forget to pay bills or miss deadlines – be careful because late payments will reflect negatively on your credit and could even result in your loan being denied.
- Do not make changes in your employment – including changing jobs to make more money. The key to getting a mortgage is showing a picture of stability and a job change could tarnish that image. Wait until after escrow closes to accept the new position.