Things to Avoid While Buying a New Home

Some new homebuyers make the mistake of rushing out to buy things to fill their home as soon as the seller says "yes" and the loan is approved. Until your loan closes, there are still some hurdles to jump. We have listed some actions below you will want to avoid when waiting for closing.

Don't throw your money around. You may be itching to turn your new living room into a home magazine cover, or celebrate your new castle, but keep away from big purchases like furniture, jewelry, appliances, or vacations until your loan closes. Your credit numbers could change suddenly if you purchase new furniture using credit cards. Since lenders are looking closely at your financial accounts, a large cash purchase is also not advised.

Don't look for a new job. Lending Institutions like to see a consistent job history on your paperwork. Getting a new job may not jeopardize your ability to qualify for a loan - especially if you are getting a bigger paycheck. However, switching jobs during the loan process might influence whether or not you are approved.

Don't take your accounts to a new bank or move around your finances. Bank statements from recent months for your accounts (checking, savings, money market, and other accounts) will probably be reviewed as the lender considers your loan application. In order to avoid fraud, lenders look for a clear and consistent picture of how you earn your living and where additional funds come from. Switching banks or transferring finances elsewhere - for whatever purpose - may make it difficult for your lender to review your funds.

Don't give a "good faith" deposit directly to the seller in a FSBO (for sale by owner) purchase. As a rule, your good faith deposit belongs to you, not to the seller until closing. Any good faith funds are to go toward your expenses closing; some sellers might not realize this. An attorney or other type of neutral party can hold your deposit, or you may put it temporarily into a trust account until closing. Should your home purchase fail, the purchase agreement should specify to whom this earnest money should go.

Firelight Mortgage Consultants can answer questions about these "Don'ts" and many others. Call us: 3032282254.

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Firelight Mortgage Consultants

Company NMLS#: 381658

7887 East Belleview Ave Ste 1100
Englewood, CO 80111