Three Down Payment Mistakes for Home Buyers to Avoid

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When buying a home, it is a good idea to have a Shorewest, REALTOR® and a Wisconsin Mortgage Corporation Loan Officer on your side. Not only will they work with you to find the perfect home and loan, they will explain step by step why and how the process will go. They will also be helping you along the way so that there will be as little delay as possible when closing day comes. Here are three examples of what your Shorewest, REALTOR® and Wisconsin Mortgage Corporation Loan Officer will tell you not to do before closing day:

Two-story house with twenty dollar bill and a piggy bank

1. Do not make a large deposit into your account at the last minute. Your lender will be collecting two months worth of bank statements before approving you for the mortgage. A large deposit late in the game could indicate that your financial stability isn’t consistent. It would be best to deposit this amount outside of the time you are being approved.

2. Storing your down payment in someone else’s account. You do not want to keep your down payment in Mom and Dad’s or your significant other’s bank account. Your lender wants to make sure that you are the one with the funds. A joint account is fine as long as both names are on the mortgage as well. If this is the case, make sure to switch over your funds to the correct account two months in advance of applying for a loan.

3. Making large purchases. Do not, we repeat, do not buy large ticket items before your closing date! A car, a large amount of furniture, a vacation…nothing! You may have the funds to do so but all the bank will see is a big red flag that a significant portion of your money is depleted and will not feel comfortable lending you more. Wait to purchase those items after closing!

If you have any questions about what to do or not to do, reach out to your Shorewest, REALTOR® or Wisconsin Mortgage Corporation Loan Officer. With their experience they can help you have the smoothest closing process with cooperation and time. Buying a home has never been easier! #ShorewestRealtors #BuyingaHome

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Categories: First Time Home Buyers, Home Buying, Homeowner, How to, Mortgage, Real Estate News, Real Estate Tips

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