Things to Avoid While Purchasing a Home
In the rush of excitement that comes with an accepted offer and a "yes" from the lender, many homebuyers make the mistake of taking their enthusiasm straight to the mall or furniture store. It's wise to remember that until you get the keys, your lender is watching your accounts very closely. Below you'll find a list of actions to avoid during this crucial time of your home purchase.
Don't empty your wallet on big-ticket items You may be itching to turn your new living room into a home magazine cover, or celebrate your new dream home, but keep away from big purchases like furniture, cars, appliances, or vacations until closing. Your credit numbers could change suddenly if you make a huge purchase using credit cards. Using cash to buy big items can also create a mistake: most banks consider your available cash when approving your loan.
Don't go on a career search. Lending Institutions feel comfortable seeing a consistent career history on your paperwork. Finding a new career (particularly one with a better paycheck) may not affect your ability to qualify for a mortgage. However, switching careers during the approval process may influence whether or not you are approved.
Don't move finances around or change banks. As your lender considers your mortgage loan package, you will likely be asked to produce bank statements for the last two or three months on your checking accounts, savings accounts, money market funds and other liquid finances. The lending institution will need to see a steady flow of your funds each month, in the interest of ruling out fraud. Even for innocent reasons, moving around finances or switching banks could make it difficult for the lender to confirm your account history.
Don't deliver a "good faith" deposit directly to the seller in a FSBO (for sale by owner) purchase. Until closing, any good faith deposit actually belongs to you. Any earnest money is to be applied to your expenses upon closing; your FSBO seller might not realize this. Get a lawyer or other neutral person who can hold the money or place it in a trust account until closing. Your contract should specify who gets the money if the transaction fails.
Executive Lending Group can walk you through the pitfalls of getting a mortgage. Give us a call: 4056158543.