After you write a contract, there are some things you can do (or not do) that will make the mortgage process so much easier for your entire Homebuyer Support Team! The Home Buyer Process is not that complicated, but there are common mistakes that we see folks make.
We don’t want there to be any delays or surprises when you approach your closing date. So, here are some suggestions that we go over with First Time Home Buyers in NC – and we figured it could be helpful for ALL home buyers these days!
What to Do After You Write A Contract On A House
o Set up your Online “Portal” and sign the RESPA documents as soon as we send them to you. We can not order an appraisal until you acknowledge some of the upfront documents, we are required by Law to send. One of them is an “Intent to Proceed.” So please do not wait 2 or 3 days to get these signed!
o Don’t procrastinate in getting all of your paperwork to your loan officer. You have due diligence dates in your contract, and you want to give us plenty of time to go over all of the details of your loan. You will need to send us your pay stubs for at least one month, a W-2, and at least one bank statement.
o Don’t quit your job. If you are offered a better job, that’s awesome – but if it’s at all possible, don’t change jobs BEFORE you close on your home! Within 72 hours of closing, someone is going to call your employer, and re-verify that you still work there.
o Stop using your credit cards – only use debit cards until you close (if possible). Your mortgage application is a “snapshot” so to speak of your financial picture. The goal is to be sure that the snapshot taken at loan application matches the one that will be taken again right before closing.
o Don’t open new charge cards, buy a refrigerator or a new sofa. A new credit report will be pulled right before closing. Your credit picture needs to look pretty much like it did when you made loan application. If you’ve applied for a Sears Card, or a Lowe’s Card – it’s going to show up, and we’re going to have extra paperwork – which is not the sort of thing you want to happen right before closing.
o Ask your Attorney if they are going to order a Survey. As the Lender, we do not require one. If you are close on cash to close, and the Attorney orders Surveys as part of the way they do business, you need to be able to plan for that.
o Don’t make large miscellaneous cash deposits. We’ve had clients sell their bass boat, grandmother’s silver and airplane to raise extra cash before closing. This is all very acceptable; however, we must show that you owned the asset, what it was worth, who you sold it to… there’s a paper trail we must establish. If this is something you are considering, talk to your loan officer.
o If the home you are purchasing has a Well Water – you will need a Bacteria test for some loan programs you apply for. Mention this to the loan officer, so that they can advise you about what tests will be required.
o If the home you are purchasing is part of a Homeowner’s Association, go ahead and find out if there’s a Capital Contribution required to join the Association, in addition to any monthly dues. This way, if it’s an extra $200, you are prepared for that additional cost.
In addition to all of this – please allow me to say one more thing. Mortgage Rates are super low right now. Not only are we seeing lots of folks buying houses, but we are also competing for resources with refinances.
In NC we close using an Attorney. Just like the Appraisers and Mortgage Lenders, they are all handling refinances along with Purchase transactions, so they are also slammed.
If you are thinking you might get a good deal by allowing your Cousin’s Wife’s Uncle close you “on the cheap…” Take Our Advice, it’s not a good idea! Just like everyone else involved in the transaction, we need to work with people who focus their attention on Real Estate Transactions.
We must approve every Closing Attorney – please don’t add to an already complicated situation. PLUS, Title work must be underwritten, which means that takes at minimum of 48 hours. If you are working with a closing attorney who gets us information back only 7 days prior to closing, we may not close on time. We have to send the Title Work to Underwriting and meet the mailbox rule for the Closing Disclosures.
Do yourself a favor, check with us and use an Attorney who has already gone through the vetting process. They will also have the safeguards in place so that we don’t end up with an unfortunate wire transfer fraud situation, which is on the rise! It’s just safer!
If you are looking for a home, want to know where to start – or have questions about what to do after you write a contract, and First Time Home Buyer programs
– call Steve Thorne 919 649 5058 NMLS 60596
Equity Resources, Inc. NMLS 1579, NC L-134393-102
201 Shannon Oaks Circle, Suite 204, Cary NC 27511