Top 5 Things NOT To Do When Preparing to Purchase a House

Today I’m talking about the 5 things to not do when you are preparing to purchase a house – especially when you are in escrow before the purchase!

1. Don’t Quit Your Job

Not only should you stay with the same job, but don’t take a pay cut or work less hours. Remember that we are updating paystubs all the time. If you quit and we can’t get a pay stub or there is a change, it creates headaches for the loan approval process.

2. Don’t Buy a New Car

For that matter: don’t buy anything significant on credit. Also, think twice about big cash purchases as well, because it could potentially be your down-payment cash or even reserves that might be needed for a specific program. Don’t open new credit accounts during this time, especially big purchases.

3. Don’t Deposit Cash into Your Account

I’m amazed at the number of times that people pull money out of a mattress and chuck it into an account. While every program is different, we always need to document large deposits. A big cash deposit is going to cause a headache almost every time.

4. Don’t Wire Funds from an Account That Isn’t Documented

Even if you are preparing funds for escrow, don’t do a wire transfer from an account that isn’t documented or isn’t documentable. We run into this all the time. Make sure that money only comes from accounts that we have documented. Only wire funds from documented accounts.

5. Don’t Leave the Country

This is one that has happened a few times recently. It’s not a good idea to leave the country when it is coming up on the time to sign. A notary with a US notarization is necessary. So, if you are overseas, then you have to go to the consulate or embassy to get things signed. Or, you’ll need to come back home.

You can leave town, because we can always have a notary come to you if you are in the United States. But don’t go on an international trip during this time.

Need Personal Recommendations?

These tips will help you avoid common issues that pop up when preparing to buy a home. If you need personalized advice about your upcoming purchase, then reach out to me any time. I’m always here to help!