Do not make any major purchases

Home purchasing does need some planning. It’s not just about saving the down-payment it’s also about paying down debts and staying away from the impulse of making any purchase that would create a debt. That would include purchases of electronics, jewelry, furniture, appliances, car, vacations, even paying for a wedding could jeopardize your financial stability with the creditors.  Pay your credit cards off, pay on time and keep your purchases to a minimum.

Keep your money where it is

When the 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 would include pay stubs as proof of employment, chequing and savings account, credit card statements. Avoid big transfers of cash as the mortgage underwriter (the person who actually approves your loan) will probably require a complete paper trail of withdrawals and deposits.

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…and don’t change banks, either.

If you are looking to renew or for a new mortgage visit us at http://www.BestMortgagesOnline.com
We deal with over 40 lenders and OUR interest is in saving YOU money.

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