All About Infleum

Here are some of the things to keep in mind prior to buying an investment property.

Nov 19

You're not purchasing a house it's a purchase of a house. An expert real estate agent in Centralia, IL is your best friend when you're looking for that perfect house.

Beware of large cash deposits and transfers into your bank account.

Lenders are not happy when money suddenly appears in their accounts. They prefer that you save the funds to pay your down payment in exactly the same account for a minimum of two months.

The lender refers to the two-month period as "seasoning" and sees it as a sign of stability and your capacity to repay the loan. If you make a large deposit or start doing unusual or unusual actions with your finances prior to the house purchase the lender might start to examine the loan and could even reverse the loan.

Do not lie or stretch the truth on your loan inquiry.

There is no reason to think of lying about your finances when filling out the loan application however, the fact needs to be stated regardless. Falsely completing a loan application is fraud, and if the lender discovers that you mislead or lie in any way, you will likely lose your loan.

If the truth is revealed, even when you lie or commit mistakes, it could cause serious issues. Make sure that you are 100% complete with all the information you provide. It is a clear no-no for anyone applying for a mortgage.

Do not let anyone inquire about your credit.

The credit check is done by the company that you deal with when you apply for a credit card, loan, or another type of service. This is done to determine whether you're a risk-free risk, similar to what a mortgage lender would.

But when the mortgage company is aware the inquiries are being made, it could believe that you're trying to take out more debt - even if you aren't. While one or two queries may not be enough to cause you to lose the home loan but there's no reason to take any unnecessary risks when you are so close to obtaining your house.


Use the money you won't use to pay closing costs.

Many home buyers find the time leading up to the purchase of a house difficult because they are facing financial hardship. The money you have saved for closing costs may seem tempting because of the tight financial conditions. But avoid spending it.

It is not a good idea to be in a position of running out of cash to pay closing costs just when you're getting ready to move into your new home. Keep your head up and don't spend it if you can help it.

Do not overextend your capabilities.

When buying a home there are many lenders who will happily give you the amount they believe you can afford on paper. What you are able to qualify for on paper, however, doesn't necessarily mean what you'll feel comfortable living with daily.

Many buyers make the mistake of overextending their property. Some buyers end up being the slave of their houses. If you enjoy a nice dinner occasionally is something you have been used to, you are probably more cautious in your home purchase.

Do not be a co-signer.

You are financially responsible if you sign an agreement as a co-signer on a loan. It does not matter that you are not the primary borrower on the loan. If the lender needs money and cannot find it elsewhere it will search for you to make payments.

Home loan lenders are fully aware of this and therefore are not approving of any applicant that decides to co-sign. You should focus on maintaining your credit score and financial stability up to closing on the house.

Do not spend more than the house is worth.

The real estate market can be very hot at times. This is known as an "seller’s market" in real estate jargon. Most of the country has experienced these conditions over the last couple of years. Buyers have been put in a situation in which winning bids is becoming commonplace, not an exception in many places.

In reality, it is more likely that you will see fancy ways to beat the next guy to the punch like the escalation clause of an offer. In such a scenario it's very easy to invest excessively in a home. You'll most likely get a home that you are happy with if you've lost out on numerous houses.


Cindy Quinn Real Estate Agent

820 E Noleman St, Centralia, IL 62801

(618) 322-6911

[email protected]