Mortgage Mistakes

If you're buying a home in the greater Boca Raton area, avoid these costly mistakes.

Opening New Accounts

Many times, when you are looking at moving into a new home, you get all excited. You start to think about the new furniture that would look great in your living room or your bedroom, etc. But, be forewarned that most banks will frown upon recent purchases or new lines of credit. Keep in mind that purchasing an automobile is definitely not a wise idea either.

Changing Jobs

I have had many clients come to me who have just changed jobs or have accepted a new job. This can be a major hurdle in obtaining a mortgage. Most banks prefer to see longevity and stability. Even if your new job allows you to obtain a salary raise, banks still won’t like the instability that comes with starting at a new company. Try to make all job changes after you close on your new Boca Raton home.

Unverified Money

Everything seems to be going great – and then all of a sudden, you get a dreaded phone call that you can’t close on your home because you can’t verify where your down payment is coming from. I see this happen way too often. Boca Raton home buyers have to be careful because banks will want to know if you received it from a Home Equity Line of Credit, a gift from a family member or possibly a friend, or from another source. Make sure you disclose this pertinent information upfront, because some loan programs have very specific rules regarding how much money you can receive from others, where the money can come from, and sometimes how long you’ve had the money in your possession.

When it comes time to close, most banks will look at your credit report to see if you’ve acquired any new debt. Whether it’s a new car, new furniture, or lump sum of money that has disappeared from your bank account, I can almost guarantee that most banks will not be too happy to fund a loan for your new Boca Raton home if you’ve taken on more than they think you can afford.

About Wendy and Elliot Koolik: Wendy and Elliot Koolik are a recognized leader in the Boca Raton luxury and country club real estate communities. While they are active in all of Palm Beach County, they focus on Boca Raton, Delray Beach and Highland Beach.

Wendy and Elliot Koolik are part of Koolik Group Realty, a family-owned and operated real estate company serving buyers and sellers since 1990. The real estate firm is known for its responsiveness to clients, knowledge of the neighborhoods they specialize in and, above all, for its boundless passion for the real estate business.

For more information, contact Wendy and Elliot Koolik by phone at 561.393.9997 x113, online at www.ElliotKoolik.com or by e-mail at EKoolik@Koolik.com