What to Avoid During your Home Purchase
In the rush of excitement that comes with an accepted offer and a "yes" from the lender, many homebuyers make the mistake of carrying their enthusiasm straight to the mall or appliance store. Until the house is really yours, there are still some hoops to jump through. Below you'll find a list of actions to stay away from during this critical time of your home purchase.
Don't buy big-ticket items. You may be itching to turn your new living room into a home magazine cover, or celebrate your new castle, but keep away from big purchases like furniture, cars, appliances, or vacations until your loan closes. Your credit numbers could be altered suddenly if you purchase new furniture using plastic. It's also a red flag to make those big-ticket purchases using cash. Lending Institutions are examining your available cash when considering your loan.
Don't get a new career. Your recent work history should show stability. Getting a new career before you start the application process for a mortgage loan may not compromise your approval at all. But in some cases, switching jobs during the loan approval process may raise concern and affect your application.
Don't take your accounts to a new bank or move around your money. As your lending institution considers your loan application, you will probably be required to produce bank statements for the last two or three months on your checking and savings accounts, money market accounts and other liquid assets. To avoid fraud, lenders require a consistent portrayal of how you earn your living and where any additional wealth comes from. No matter the reason, switching banks or moving funds from one account to another might raise a red flag with your lender and impede your loan process.
Don't give cash directly to your seller (usually in the case of of "for sale by owner") for a "good faith" deposit. Until the sale is complete, the good faith deposit remains yours. Although your FSBO seller may not know this, any good faith funds should be applied to the buyer's closing expenses. An attorney or other type of neutral party can hang onto your deposit, or you may put it temporarily into a trust account until you close. If your transaction fails, the purchase contract should specify to whom this good faith deposit should go.
REDDISH BULL FINANCE, INC. | NMLS #1247892 can walk you through the pitfalls of getting a mortgage. Call us: 561-475-2281.