Things to Avoid While Purchasing a New Home

Some new homebuyers make the mistake of rushing out to buy things to fill their home soon after the seller accepts their offer and the lender approves the loan. There still remain a few major hurdles to jump before your loan closes. We have given you a list of things below you will want to avoid when waiting for your loan to close.

Don't buy big-ticket items. You may be itching to buy that new couch for the soon-to-be-yours den, but it's advisable to avoid making large buys like furniture, appliances, electronic equipment, or vacations until your home loan closes. Your credit numbers could be altered suddenly if you purchase new furniture using credit cards. Using cash to buy expensive items can also create a mistake: many lenders take into consideration your available cash when approving your mortgage loan.

Don't look for a new career. Your recent work history should show consistency. Changing jobs may not compromise your ability to qualify for a mortgage loan - especially if you are improving your salary. However, if you switch careers before you qualify, your process could fail or be stalled.

Don't switch your accounts to a new bank or move around your money. As the lending institution reviews your mortgage application, you will likely be required to produce bank statements for the last few months for your checking and savings accounts, money market funds and other liquid wealth. Your lender is looking for a steady flow of your funds each month, in the interest of avoiding fraud. Changing banks or moving funds to another account - even if its just to consolidate funds - might hinder the documentation of your accounts.

Don't give your FSBO (for sale by owner) seller earnest money, made out directly to him. Your good faith deposit does not belong to the seller: it remains yours until the sale closes. Your FSBO seller may not know that these good faith funds is to be applied to your expenses upon closing. We recommend that you put the deposit into a trust account, or get an attorney to hold it until the closing of the sale. The contract should specify where the money goes if the home purchase falls through.

REDDISH BULL FINANCE, INC. | NMLS #1247892 can answer questions about these "Don'ts" and many others. Call us: 561-475-2281.