Don't Trip Yourself up While Buying your New Home
In the rush of excitement that comes with an accepted offer and a "yes" from the lender, some homebuyers make the error of carrying their enthusiasm straight to the mall or appliance store. There still remain a few major hurdles to jump before your loan closes. We have given you a list of actions below we suggest you avoid when waiting for your loan to close.
Don't empty your wallet on big-ticket items Although you may be listing ways to turn your new home into a showplace, try to stay away from major purchases like appliances, electronics, or expensive furnishings. You will also want to avoid vacations and car purchases until the closing of your loan. Your credit numbers could be altered suddenly if you purchase new furniture using credit cards. It's even a bad idea to make those large purchases with cash. Lenders are looking at your cash on hand when considering your loan.
Don't get a new career. Your recent career history should show stability. Getting a new job may not compromise your ability to qualify for a mortgage loan - especially if you are improving your salary. However, switching jobs during the approval process might influence your approval.
Don't move finances around or switch banks. Your lender will ask for recent bank statements for your accounts: checking, savings, money market, and other liquid assets. The lender is looking for a steady rise and fall of your funds each month, in order to avoid fraud. Changing banks or moving funds elsewhere - no matter the reason - may make it difficult for your lender to document your funds.
Don't give your FSBO (for sale by owner) seller a "good faith" deposit, cash in hand. Until the completion of the deal, any good faith deposit remains yours. Any earnest money is to be applied to your expenses closing; some FSBO sellers might not understand this. We recommend that you put the deposit into a trust account, or get a neutral party, like a lawyer, to hold it until closing. Your purchase agreement should document who keeps the money if the home purchase does not go through.
At Firelight Mortgage Consultants, we answer questions about this process every day. Give us a call: (303) 228-2254.