Watch Your SpendingIf you’re thinking about buying a home then you definitely want to watch your spending.  When getting approved to buy a home lenders will carefully look over your accounts to make sure you can afford what you have and that your accounts are in good standing.  Things like the length of those accounts, balances and your payment history will all be factors you’ll want to get in line before you decide to purchase a home.  Lenders will also look over your bank accounts and the balances so it’s a good idea to keep as munch money there as possible during your home buying journey.

Think about this for a moment, if you were a lender and the applicant you were reviewing had poor credit, no money in the bank and inconsistent payment history would you loan money to them?  Probably no right.  The same goes for lenders when you’re applying for the loan, you want to make sure that when you’re ready to buy and get approved for your loan that all your ducks are in a row.  That means no spending sprees and watching every dime you spend till you close escrow on your new home.

Watch Your Spending Throughout Your Escrow

Do not overindulge, in fact don’t buy anything during the time you’re buying a house that you don’t absolutely need.  You can live without a weekend trip to Disneyland for a couple of weeks.  It may sound ridiculous but the truth is if you exceed your debt to income ratio or DTI during the escrow and lender final approval process your entire deal is blown.  You’ve come this far and you’re almost done so don’t lose it all at the last-minute.

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One more point to consider, don’t move money around in your accounts.  At this point in the approval game you’ve already given all your bank account statements to the lender so they know what your balances are, do not complicate things by moving money and transferring money from one account to another.  Simply moving from account to account may adversely affect your loan program and ultimately may affect you getting a loan entirely.

For more information on the loan approval process and why you need to watch your spending, please contact us or leave a comment below.  We’d appreciate the opportunity to assist you!

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