| No
Major Purchase of Any Kind
When
you get a raise or accumulate some savings, you may find yourself
confronted by an innate instinct of modern civilized men and women.
The
desire to spend money.
It
begins simply, by going out to restaurants, then accelerates to
purchasing clothing, electronic gadgets, and since North Americans
have a special fondness for the automobile, you may even buy a "brand
new car."
If
you're married or ambitious, a few months later your thoughts eventually
turn toward buying your own home. Or a move-up home, if you are
already a homeowner.
Next,
you contact a loan officer to get prequalified for a mortgage loan.
You state your desired price and how much you can put down. You
provide your income and may even supply pay stubs and W2 forms.
The loan officer methodically crunches the numbers (by telephone,
in person, or even over the internet).
"If
only you didn't have this car payment..."
Don’t
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 retirement accounts.
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 properly document.
So
leave your money where it is until you talk to a loan officer.
Oh…don’t
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 application.
copyright
2000 by Terry Light and RealEstate
ABC
 |
Art
Busch
ABR, GRI
316-686-7121
316-990-7039
e-mail
me |
PLAZA REAL ESTATE, INC.
12221 E. Central
Wichita, KS 67206 |