When you’ve previously bought a house, you’ll know how important putting in the right amount of down payment is. This will affect the mortgage rate and monthly mortgage payments you’ll be responsible for in the years to come. That’s why if you’re planning to buy a new home in the near future, you must be more prepared for the down payment.
Here are some things you must not do to keep it safe and secured:
Big Last Minute Deposits
If you’re getting a percentage of your down payment as a gift from your parents or somebody else, don’t wait until the last minute until you claim it. If there’s a sudden big deposit in your bank account, lenders will more likely be doubtful about it and assume it’s from another loan you’ve made. The best thing to do is slowly add smaller amounts to your bank account and let them sit there a few months before you make the down payment.
Store in Another Person’s Account
Lenders may flee hastily if you stash your cash in another person’s bank account and suddenly transfer it to yours. Even if it’s your parent’s or your spouse’s bank account, it will still look suspicious because there’s no reason to do this. Lenders want to make sure that buyers are the ones putting in down payment for the St. Louis houses for sale they are buying.
Failing to Consolidate Funds
When buying a house, it’s better to have all your funds in a single account. Even if you have the right amount, it will stick cause problems if they are separated in multiple accounts or not yet liquidated. This is a paper trail nightmare, so ask your mortgage broker or real estate agent to help you fix this problem early on. Consolidate the funds you’ll need for the down payment and other extra costs.
Don’t do these things and you’ll secure your down payment in a better way. These can help you handle other aspects of the home purchase more efficiently.