Don't Trip Yourself up While Buying your New Home

Many 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. Until the keys are handed over, there are still some hoops to jump through. Below you'll find a list of things 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 kitchen into a home magazine cover, or celebrate your new castle, but stay away from big purchases like furniture, jewelry, appliances, or vacations until closing. Financing your Plasma TVs with a store card or a bank credit card could jeopardize your credit worthiness when you need it the most. It's also a bad idea to make those huge purchases with cash. Lenders are examining your available cash when considering your loan.

Don't get a new career. Your recent career history should show consistency. Getting a new job before you start the application process for a loan may not affect your approval at all. However, switching jobs in the middle of your application process may influence your approval.

Don't switch banks or move finances around in your accounts. While the lending institution reviews your loan package, you will probably be required to submit bank statements for the last few months for your saving and checking accounts, money market accounts and other liquid assets. In order to detect fraud, lenders look for a clear and consistent picture of how you earn your money and where any additional funds come from. Switching banks or transferring money elsewhere - no matter the purpose - may hinder the review of your accounts.

Don't give your FSBO (for sale by owner) seller earnest money, made out directly to him. As a rule, your earnest money is yours, not the seller's until the sale is final. Some FSBO sellers may not know that the good faith funds should be used for your expenses upon closing. A neutral party, like an attorney can hold onto your earnest money, or you may put it temporarily into a trust account until closing. The final disposition of good faith funds, if your sale fails, should be included in the contract with the seller.

Executive Lending Group can walk you through the pitfalls of getting a mortgage. Give us a call: 4056158543.

Looking to Buy?

Are you looking to buy a house? Let us help you. Just fill out as much of the information below that you want and we'll get right back to you, with no obligation to you. We guarantee your privacy.

Your Information

* Name:

* Email:

Phone:

Street Address:

City:

State:

Country:

Zip/Postal Code:

Some Details

When Are You Moving?:

Where Are You Moving:

Your Price Range?:

Number of Bedrooms?:

Number of Bathrooms?:

Size In Square Feet?:

Any Comments, Concerns, Or Questions:

SMS Messaging:

By checking the box, you agree that Executive Lending Group may call/text you about your inquiry, which may involve use of automated means and prerecorded/artificial voices.. Message/data rates may apply.