Don't Trip Yourself up While Buying a Home
With the thrill 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 furniture store. Until your loan closes, there still remain some hurdles to jump. Here are some things to stay clear of before closing to assure the transaction goes well.
Don't empty your wallet on big-ticket items You may be itching to turn your new kitchen into a showplace, or celebrate your new castle, but keep away from expensive purchases like furniture, jewelry, appliances, or vacations until closing. You may send up red flags with your lender if you finance your electronics on your credit cards in the middle of your loan process. Using cash to purchase big items can also be a mistake: many lending institutions take into consideration your cash on hand when approving your application.
Don't get a new career. Stability in your work history is a good thing to lending institutions. Changing jobs may not jeopardize your ability to qualify for a mortgage loan - especially if you are going to be making more money. But for some, getting a new career during the loan approval process could bring concern and hinder your application.
Don't take your accounts to a new bank or move around your money. While your lending institution considers your mortgage loan application, you will probably be asked to provide bank statements for recent months for your saving and checking accounts, money market funds and other liquid finances. To avoid fraud, lenders need clear documentation of how you earn your living and where any additional money comes from. Switching banks or moving finances to another account - no matter the purpose - may make it difficult for the lender to document your funds.
Don't give your FSBO (for sale by owner) seller earnest money, cash in hand. As a rule, your good faith deposit is yours, not the seller's until the deal closes. The good faith funds are to go toward your expenses upon closing; your FSBO seller may not know this. Get an attorney or other neutral person who will hold the deposit or put it in a trust account until closing. Your contract should indicate to whom the deposit goes if the home purchase falls through.
REDDISH BULL FINANCE, INC. | NMLS #1247892 can walk you through the pitfalls of getting a mortgage. Give us a call: 561-475-2281.