Don't Trip Yourself up While Buying your Home
Many new homebuyers make the mistake of rushing out to buy new things for their home as soon as the seller accepts their offer and the loan is approved. Until your loan closes, there are still some hurdles to jump. We have given you a list of things below you will want to stay away from when waiting for your loan to close.
Don't make expensive purchases. Although you will be listing ways to turn your new home into a castle, try to stay away from major purchases like appliances, electronics, or furniture. You will also want to avoid vacations and vehicle purchases until the closing of your loan. Financing new furniture with a store card or a bank credit card could put your credit worthiness at risk when you need it the most. It's even a red flag to make those big-ticket purchases using cash. Lenders are looking at your available cash when considering your loan.
Don't get a new career. Your recent career history should show consistency. Changing jobs may not affect your ability to qualify for a mortgage loan - particularly if you are going to be making more money. However, if you switch careers before you qualify, your process could fail or be bogged down.
Don't move finances around or change banks. Your lending institution will instruct the submission of recent bank statements on all of your accounts: checking, savings, money market, and other liquid assets. Your lender will need to see a steady flow of your funds over the pay period, in order to rule out fraud. Even for innocent reasons, moving around money or changing banks could make it more difficult for the lender to confirm your bank history.
Don't give money directly to your seller (usually in the case of of "for sale by owner") to be used as a "good faith" deposit. Until the sale is complete, the good faith deposit remains yours. Although some FSBO sellers might not know this, your earnest money must go toward the buyer's closing expenses. Find an attorney or other neutral person who can hang on to the money or place it in a trust account until closing. Your purchase agreement should indicate to whom the funds go if the transaction falls through.
1st Credential Mortgage Inc can walk you through the pitfalls of getting a mortgage. Call us at (281) 778-0805.