Things to Avoid While Purchasing a Home
What's more fun than getting a bunch of new stuff to go in your future home? Not much. But making big purchases before closing can be harmful. There still remain a few major hurdles to jump before closing. Below you'll find a list of actions to stay away from during this crucial time of your home purchase.
Don't overspend on big-ticket items You may be itching to buy that new sofa for the soon-to-be-yours living room, but it's best to stay away from making big ticket purchases like furniture, appliances, electronic equipment, or cars until closing. Your credit numbers could change suddenly if you make a huge purchase using credit cards. Because lending institutions are perusing your financial accounts, a large cash purchase is also not advised.
Don't get a new career. Your recent career history should show stability. Changing jobs may not affect your ability to qualify for a mortgage loan - especially if you are getting a better salary. However, switching jobs during the approval process might affect your approval.
Don't move finances around or change banks. Bank statements from the last few months for accounts in your name (checking, savings, money market, and other assets) will likely be reviewed as the lender makes decisions regarding your loan application. In order to avoid fraud, lenders want to see a clear and consistent picture of how you earn your living and where additional money comes from. Even for practical purposes, transferring finances or changing banks might make it more difficult for your lending institution to confirm your account history.
Don't give your FSBO (for sale by owner) seller a "good faith" deposit, made out directly to him. Your good faith deposit does not belong to the seller: it is actually yours until the sale closes. Your seller might not realize that the good faith funds should go toward your expenses at closing. Find a lawyer or other neutral person who is able to hold the money or put it in a trust account until closing. Your purchase contract should indicate who gets the earnest funds if the transaction falls through.
1st Credential Mortgage Inc can walk you through the pitfalls of getting a mortgage. Give us a call at (281) 778-0805.