You can unknowingly sabotage your home financing goals by making some obvious and not-so-obvious moves with your finances. Check out the list below to see if you know the top 10 things NOT to do when you are in the process of buying a home or refinancing.
- Transfer money between accounts, unless receiving complete documentation from your bank, itemizing all transfers.
- Make unnecessary checking or savings account transactions, such as withdrawals or deposits
- Leave an existing job - changing jobs may mean you don't have an appropriate work history, especially if you change fields of employment as well.
- Allow your bank accounts to go into a negative balance, even if you have overdraft protection
- Apply for credit in any form, including credit for major purchases (such as a car or furniture), or apply for credit to consolidate or change existing credit
- Co-sign on any debt with a family member or anyone else. Even if you are not making the payments, it will affect your debt to income ratio.
- Ask a tenant to move out, or give your landlord notice that you are moving out
- Delay paying all debts on time
- Pay a bill in collections. If about to pay a bill in collections from a collection agency, try to pay it at closing
- Have a friend or family member pay for anything related to the purchase of the home (appraisal, earnest money, down payment, etc.), since gifts are only allowed under certain guidelines.
- Don't lie on your loan application. Even though that sounds obvious, if you neglect to mention a debt or liability or over report your income, it's considered fraud.
For information on hard money loans in Las Vegas, call us at 702-985-7654.
Team Leader, The Tonnesen Team
Berkshire Hathaway HomeServices, Nevada
3185 St Rose Pkwy #100 Henderson, NV 89052
With over 30 years of experience helping families call Las Vegas "home!"