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FINANCING YOUR HOME PURCHASE

If you need financing, and are buying a condo or coop, make sure that

  • The building is approved by a few Lenders.
  • If you are paying all cash, but want to recoup some of that capital after you close, and get a mortgage interest deduction, it’s possible. It’s called a Technical Refinance.
  • Do not switch jobs prior to Closing.
  • Do not quit your job prior to Closing.
  • Do not make any major planned purchases until after you Close.
  • Do not make any major deposits or withdraws until after you Close.
  • Check your credit periodically, to ensure that there are no potential issues if and when you decide to apply for a mortgage. You may want to join a Credit Service to monitor this for you.
  • Do not switch from a salary to 1099 income before you Close.
  • If you have been in a job for less than 2 years, most Lenders will not give you credit for your bonuses, unless at least 2 bonuses are guaranteed in an Employment Contract.
  • If your income is trending downward, most Lenders will not allow you to average your last 2-3 years’ income. They will just use the last year, with the lowest income numbers.
  • When checking your liquid assets, most Lenders will allow you to use your retirement assets, but they will only give you credit for 50% – 70% of the value.
  • Do not transfer funds from account to account until after you Close.
  • Do not let multiple Lenders pull your credit.
  • If you start a new salaried job, you must be there for one month prior to Closing.

 

 

Jere Lyons

Senior Vice President
GuardHill Financial Corp.