Don't Trip Yourself up While Buying your 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. Keep in mind that until your keys are in hand, your lender is watching your accounts very closely. We have given you a list of things below we suggest you stay away from when waiting for your loan to close.
Don't throw your money around. You may be itching to turn your new kitchen into a showplace, or celebrate your new dream home, but stay away from big purchases like furniture, cars, appliances, or vacations until closing. Using credit cards to buy furniture could jeopardize your lending process by distorting your numbers. Using cash to purchase big items can even create a bad idea: most lenders consider your available cash when approving your application.
Don't go on a career search. Lending Institutions look for a consistent job history on your application forms. Finding a new career (particularly one with a bump in salary) may not affect your ability to qualify for your loan. However, if you switch careers before your loan is approved, your process could fail or be bogged down.
Don't switch your accounts to a new bank or move around your finances. Bank statements from recent months for accounts in your name (savings, checking, money market, and others) will likely be reviewed as the lender makes decisions regarding your loan application. The lending institution needs to see a consistent flow of your funds each pay period, in order to avoid fraud. Switching banks or transferring funds to another account - no matter the reason - could hinder the review of your funds.
Don't give your FSBO (for sale by owner) seller earnest money, cash in hand. Until the completion of the deal, the good faith deposit remains yours. Some sellers may not realize that the earnest money should be used for your expenses at closing. We recommend that you put the money into a trust account, or get an attorney to hold it until closing. The disposition of good faith money, in the case of a failed transaction, should be indicated in the contract with the seller.
REDDISH BULL FINANCE, INC. | NMLS #1247892 can walk you through the pitfalls of getting a mortgage. Give us a call at 561-475-2281.