RSS Feed

Tag Archives: Home


Things Not to Do Before Purchasing a Home

March 21st, 2012 

No Major Purchase of Any Kind

Review the article titled, “Don’t Buy a Car,” and apply it to any major purchase that would create debt of any kind. This includes furniture, appliances, electronic equipment, jewelry, vacations, expensive weddings, and automobiles.

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.



Preparing Your Home For Sale

First things first…make it super clean!  When you are trying to sale a product, you want it to be the best product out there!  Make sure your home shines from top to bottom!  Next, clear the clutter and simplify.  You may need to get rid of some furniture to make your rooms look larger.  Third, landscape and check gutters.  If its the right season, plant some pretty flowers to invite your buyers in.  Lastly, add nice touches.  Coordinate colors inside your home and put out a few key pieces that draw attention.  Make sure to keep lamps on during showings and set an inviting mood with light music.

%d bloggers like this: