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What NOT to do Before Buying a Home

Categories: Home Buying Tips, Home Owner Tips, In The News, New Homes in Fayetteville, New Homes in Raleigh, Royal Oaks Homes, Shopping | Posted: March 20, 2014

piggy bank

Now that you are pre-approved for a mortgage and under contract for a new home it’s time to start buying your dream furniture, right? Wrong. Remember, pre-approval is not approval. Pre-approval is just the beginning and according to Credit.com, your lender can change his or her mind if they start seeing you commit one or all of the practices listed below. Be mindful of these five things when you start searching for homes. Your lender wants you to get into your new home as much as you do so make the process as easy as possible for them by avoiding these missteps!

1) Use a Lot of Credit

Now that you have almost secured a new home, it’s time to think smart with your finances. Do not go shopping for a new living room set for your new dream home. Don’t buy a new car, a boat or anything else considered a major expense. This type of credit action can negatively affect your monthly debt-to-income ratio and portray you as a bad candidate for a loan. Be smart and wait until after your loan closes before you start spending!

2) Move Money Around

You need your bank account to stay pretty consistent between the time a lender looks at your most recent bank statement (during the pre-approval process) and again during the underwriting process when they look at your assets and bank records. Unusual withdrawals and deposits, especially if undocumented, will raise red flags for lenders. If you have a gift fund make sure you fill out a gift-letter document to prove that an appropriate source gave you the money (friend, relative, significant other). The letter basically states that so -and-so is giving you money to be applied to the buying of the home and that the recipient does not need to repay the donor. This paper trail helps discern that the contribution is not disguised as a loan, in which case you would be lying about your debt burden.

3) Pay Bills Late

Payment history accounts for about a third of your overall credit score. A late payment will affect your credit report adversely and can knock your score down quite a few points, especially if it is a 30-day late payment. If you don’t think that this is a huge deal (especially if you have a fantastic credit score) think about it this way: if this late payment is for rent or mortgage, most lenders will throw your application right out. In fact, many lenders will require 12 consecutive months of on-time payments before considering your application.

4) Co-Sign a Loan

When you co-sign a loan, it means you are financially responsible in the event that the borrow can not pay. You may be co-signing with a super responsible friend, relative, colleague but that does not erase the fact that you could still have to pay their debt; at least, this is how lenders will look at it. Lenders will factor in this new financial obligation which can negatively affect your debt-to-income ratio.

5) Change Employment

When you change careers or positions, lenders will be looking at a few things. (A) Are you entering an entirely new field?  (B) Are you switching to a commission-based income? (C) Are you starting your own business? These questions may raise red flags for lenders because you could (A) not do well in this new field and quit/get fired, (B) not make a lot of commission, and (C) not thrive at your own business. To lenders, you might not seem like the best candidate for a loan because you are not showing a consistency in your financial stability that they want to see continued.

 

Royal Oaks Supports Toys for Tots

Categories: Bella Casa Estates, Bella Casa Parkside, Cary, Holly Springs, Home Owner Tips, In The News, NC, Parker Pointe, Raleigh, Royal Oaks Communities, Royal Oaks Homes, Shopping, Toys for Tots | Posted: December 3, 2013

toys4totsThis holiday season, Royal Oaks is supporting the U.S. Marine Corps Reserve’s  Toys for Tots Program. Every year, the program collects toys for those in need throughout the local community. These toys, which give hope to those who are less fortunate, also bring people together while enhancing the Christmas spirit within the community.

The common goal to provide children with the joy of opening presents on Christmas morning is amazing and Royal Oaks is excited to be part of this worthy cause. Help us help others this season and drop off a gift at any of our locations!! Below you will find addresses for each our sales models as well as our main office.

 

 **You can drop off toys anytime before Friday, December 13th at noon! Please do not wrap gifts. 

Royal Oaks has 8 drop-off sites :

The Main Office
1210 Trinity Road, Suite 102
Raleigh, NC 
27607 
 
The Peninsula at Amberly Sales Model
2003 Burrus Hall Circle
Cary, NC 
 27519
 
Bella Casa Estates & Bella Casa Parkside Sales Model
2600 Marazzi Trail 
Apex, NC 
27502
 
Parker Pointe/Southern Oaks/Carriage Heights Sales Model
654 Monterey Pine 
Fuquay-Varina, NC
27526
 
Chandler’s Ridge & Plantation Pointe Sales Model
117 Lynshire Avenue
Clayton, NC
27527
 
Forest Springs Sales Model
103 Forest Haven Drive
Holly Springs, NC
27540
 
Whetstone West Sales Model
27 Brax Carr Way 
Angier, NC 
27501
 
Lexington Plantation Sales Model 
(Gate, Village, Colony, Manors)
14 Expedition Way
Cameron, NC
28326
 

Royal Oaks Building Group is a new home builder in Raleigh and Fayetteville, North Carolina. For additional information about Royal Oaks building your Raleigh new home, please call (888) 677-1502.