|Things Not to Do Before Purchasing a Home
Donít Move Money Around
When a lender reviews your loan package for approval, one of the
things they are concerned about is the source of funds for your
down payment and closing costs. Most likely, you will be asked
to provide statements for the last two or three months on any of
your liquid assets. This includes checking accounts, savings
accounts, money market funds, certificates of deposit, stock
statements, mutual funds, and even your company 401K and
If you have been moving money between accounts during that time,
there may be large deposits and withdrawals in some of them.
The mortgage underwriter (the person who actually approves your
loan) will probably require a complete paper trail of all the
withdrawals and deposits. You may be required to produce
cancelled checks, deposit receipts, and other seemingly
inconsequential data, which could get quite tedious.
Perhaps you become exasperated at your lender, but they are only
doing their job correctly. To ensure quality control and
eliminate potential fraud, it is a requirement on most loans to
completely document the source of all funds. Moving your money
around, even if you are consolidating your funds to make it
"easier," could make it more difficult for the lender to
So leave your money where it is until you talk to a loan
OhÖdonít change banks, either.
Should You Change Jobs?
For most people, changing employers will not really affect your
ability to qualify for a mortgage loan, especially if you are
going to be earning more money. For some homebuyers, however,
the effects of changing jobs can be disastrous to your loan