Buying a new home and getting a mortgage

When getting a mortgage on a new home purchase in the Metro Detroit real estate here are some things to not to do.

1. Don't quit your job
2. Don't take out any new loans.
3. Don't borrow from your 401K
4. Don't go out and buy a new car
5. Don't go out and charge a bunch of stuff for the new house. 

The bank does a calculation called the debt ratio.  It is what you make versus what you owe.  So going out and getting a new car, charging new furniture, borrowing from your 401k will throw your debt ratio out of whack.  I have had buyers not be able to close on their home because they went out and spent too much.  It is a tough call to make to tell buyers that their deal fell apart because they spent money

As for quitting your job or getting laid off you can't buy a house then.  Tell everybody as soon as possible.  This is mortgage fraud and the bank will find out.  They do phone checks of your employment.  Don't  buy a house if you don't have a job.   Even if it is your dream house.

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