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Here are some tips to be aware of prior to purchasing an investment property.

Nov 19

It's not just about purchasing a house it's a purchase of a house. An expert realtor in Centralia, IL is your most trusted source when looking for the perfect home.

Avoid large cash deposits or transfers to your bank account.

They are not pleased when cash suddenly shows up in their accounts. They would rather have the money going towards your down payment in the same bank account for at least two months.

The lender refers to the two-month period as "seasoning" and views it as an indicator of your stability and ability to repay the loan. The lender may begin looking at your loan application if you have made huge deposits or done something that is unusual or unplanned in your finances prior to the purchase of your house.

Do not lie or stretch the truth about your loan request.

It is possible that you are not in the habit of lying about your financial situation when you fill out a loan application, but the point must be made clear regardless. Lying on a loan application is fraud and, if the lender finds out that you have lied in any way, you will almost certainly lose your loan.

In fact, even if you lie about the facts or make a mistake that is not accurate, could cause serious issues if the truth is discovered. Therefore, be extremely sure that the data you provide is 100% exact. Falsifying knowledge is a definite no-no when applying for a mortgage.

Don't allow anyone to request information about your credit.

Any time you apply for a credit card or loan, or try to sign up for any new service, for example, one for cell phones the company you're working with is likely to conduct a credit inquiry. This is similar to the mortgage lender's credit inquiry.

If the mortgage lender notices that there are inquiries being made, it may believe that you're trying to get more debt, even if you're not. Although it may be a matter of a few questions to lose your loan you shouldn't take risky decisions when you're this close to your home.

Spend the money you don't intend to use to pay closing costs.

For many homebuyers that are home buyers, the time leading up to the home purchase is one of financial hardship. The savings you've made to pay closing costs might seem tempting because of the tight budget. But avoid spending it.

The last thing you want is to be unable to pay closing costs once you're at the stage where you are almost in your dream home. Be patient and do not spend it if you can.

Don't overextend yourself.

If you're looking to buy a house many lenders will be happy to give you what they believe you can manage on paper. But, what you qualify for on paper doesn't necessarily reflect the lifestyle that you live each day.

Some buyers make the mistake of really overextending themselves. Many buyers end up becoming a slave to their houses. If going out to some nice meals every now and then is something you've been accustomed to being more conservative in your home purchase.

Do not sign a co-signer agreement with anyone.

When you sign a loan co-signed by a third party, you are obligating yourself financially. It doesn't matter if you aren't the principal lender. If the lender is urgently in need of cash and can't obtain it from another source it will look out to pay.

This is a fact that home lenders are aware of and are not in favor of co-signers. You should focus on maintaining your credit rating and financial stability until closing on the home.

Do not spend more than what your home is worth.

The real estate market can be extremely hot at times. In real estate jargon, we refer to this as a "seller's market." Most of the country is experiencing this situation for the last couple of years. In many cases, buyers have been in a situation where winning bidding battles are the norm.

There is a greater chance to think of creative strategies to win over the next guy like an escalation clause within an offer. In such an environment it's not difficult to spend too much on a house. You'll probably end up with a house that you love if you've lost out on many houses.


Cindy Quinn Real Estate Agent

820 E Noleman St, Centralia, IL 62801

(618) 322-6911

[email protected]