8 Formal loan application
9 Earnest money
Call your lender and make another appointment.
Earnest money is like a security deposit, which demonstrates to the seller your intentions of fulfilling your part of the sales contract. It is generally payable at the time the contract is accepted or within the first 5 business days. This money will be deposited in an escrow account to be used as part of your down payment and closing costs. These funds should be “seasoned” in your account prior to purchasing. If the money just “appears” the lender may question its origin. A personal check is acceptable, although a cashier’s or certified check would suffice.
You will need to bring him a copy of the contract, as well as any other documents he needs to continue your loan application. At this time, there could be a fee of approximately $500 and you will have the opportunity to lock in your interest rate. This will cover the cost of the credit reports and the appraisal fee of your new property. You must do this in the first seven calendar days after the contract is accepted.
IMPORTANT
DO NOT make any “BIG TICKET” purchases, DO NOT cosign a loan for anyone, and DO NOT change jobs during this process!
This will change your qualifications and probably result in a LOAN REJECTION just before closing. Also, be sure to keep all of your “MONIES” in an account with a paper trail, which can be followed. Cash under your mattress or in a cookie jar is difficult for a lender to use and prove as yours.
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