Don't Trip Yourself up While Buying your New Home
What's better than buying a bunch of new stuff to go in your future home? Nothing. But buying big ticket items before your loan closes could be trouble. Until the keys are handed over, there are still some hurdles to jump. Here are some things to stay clear of during the home buying process to assure the transaction goes well.
Don't empty your wallet on big-ticket items Although you may be planning ways to turn your new house into a showplace, avoid major purchases like appliances, electronics, or furniture. You will also want to keep away from vacations and vehicle purchases until the closing of your loan. Your lender may send up red flags if you finance your appliances on your credit cards in the middle of your loan process. Since lending institutions are examining your financial accounts, a large cash purchase is also a mistake.
Don't get a new career. Stability in your job history is a good thing to lending institutions. Finding a new career (especially one with a bigger paycheck) may not change your ability to qualify for your mortgage loan. However, if you switch careers before approval, your loan process could fail or be stalled.
Don't take your accounts to a new bank or move around your money. Bank statements from recent months for all of your accounts (savings, checking, money market, and other assets) will probably be studied as the lending institution considers your loan application. In order to avoid fraud, lenders will need a clear and consistent picture of how you earn your money and where additional money comes from. No matter the reason, switching banks or transferring funds could raise a red flag with the lender and impede your qualification process.
Don't give a "good faith" deposit directly to the seller in a FSBO (for sale by owner) purchase. Until the completion of the deal, the good faith money remains yours. Although some individual sellers might not realize this, any good faith money should be used for your closing expenses. Find an attorney or other neutral person who is able to hang on to the funds or put them in a trust account until closing. Should your sale fall through, your purchase agreement should specify where this good faith deposit should go.
1st Credential Mortgage Inc can answer questions about these "Don'ts" and many others. Give us a call: (281) 778-0805.