Important House Buying Tip
Since I am going through the experience of buying a house right now I can tell you there are quite a few gotchas. For one, I am not in the situation of having a new house under contract while the old has not sold yet. However, the opportunity was too good to pass on and our lowball offer was unconditionally accepted.
Here is an important tip for when buying a house. Start planning early and get your ducks in a row months in advance. Here I am talking about your financial situation. No, I am not talking about cleaning up credit or so, but to have your down payments and overall available funds in the right place at least 3 months ago. It is otherwise a big hassle to provide the mortgage company with all the paperwork. As an example I was having some funds in a business money market and decided on the last minute to use them and to pull the money out of the business. This was based on the fact that we bought a house first before having the old one under contract. So, I needed the funds and moved money over into my personal checking account. Now for every large money movement the mortgage company wants to know where the money comes from. They want to be sure you are not using a credit card or other loans to fund your down payment.
So, way more questions and additional paperwork for me. If I would have known, I would have moved the money over 2-3 months ago and things would have been fine since the mortgage company does not go back that far checking your statements as by then stuff would show up in your credit report anyway.
Also, make sure your submitted paperwork matches or exceeds your expected down payment in regards to available funds. The mortgage company will check and will ask the question of where your down payment is.
All these things can be fixed in the process, but house buying is stressful and you want to be prepared as possible to make it as easy as possible. We found our dream home and will be moving soon. Good luck and all the best for when it is your time. If you are a first time home buyer, maybe this Highlands Ranch Home for sale is of interest for you.
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