Financing Homes in Lake Tahoe and Truckee since 1992.

Buyer’s don’ts

Buying a your Tahoe Dream Home? Don’t trip yourself up.

What’s more fun than buying a bunch of new stuff to go in your Tahoe home? Not much. But buying big ticket items before closing could be trouble. Until the keys are handed over, there are still some hoops to jump through. We have given you a list of actions below we suggest you avoid when waiting for your Tahoe home loan to close.

Don’t overspend on big-ticket items You may be itching to turn your new kitchen into a showplace, or celebrate your new Tahoe home, but keep away from expensive purchases like furniture, cars, appliances, or vacations until the loan closes. Your lender may send up red flags if you buy your electronics on your credit cards during your loan process. Using cash to buy big items can also be a problem: many lenders take into consideration your available cash when approving your mortgage.

Don’t look for a new job. Lenders look for a consistent job history on your application forms. Finding a new job (particularly one with a bigger paycheck) may not affect your ability to qualify for your loan. However, switching careers during the loan process could influence whether or not you are approved.

Don’t move money around or change banks. While your lending institution reviews your Tahoe home loan application, you will likely be required to provide bank statements for the last few months for your checking accounts, savings accounts, money market funds and other liquid finances. To detect potential fraud, most lenders need thorough paperwork to determine the source of all funds. No matter the reason, moving banks or transferring funds might raise a red flag with the lender and impede your qualification process.

Don’t give money directly to your seller for earnest money. Your good faith deposit does not belong to the seller: it is actually yours until closing. Your earnest funds are to go toward your expenses upon closing; some sellers might not realize this. A Tahoe escrow company  or other type of neutral party can hold your earnest money, or you may put it temporarily into a trust account until closing. The disposition of earnest money, in the case of a failed transaction, should be specified in the purchase agreement with your seller.

Please contact us to learn more about financing your home 1 (775) 831-7151