Don't Trip Yourself up 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 accepts their offer and the loan is approved. There still remain a few major hurdles to jump before the house is realy yours. 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. You may be itching to turn your new living room into a showplace, or celebrate your new castle, but stay away from big purchases like furniture, cars, appliances, or vacations until the loan closes. Your lender may send up red flags if you finance your furniture on your credit cards in the middle of your loan process. Because lenders are examining your bank accounts, a large cash purchase is also not advised.
Don't go on a career search. Your recent work history should show consistency. Getting a new job before you apply for a mortgage loan may not compromise your approval at all. But for some, changing careers during the mortgage application process may bring concern and affect your application.
Don't change banks or move cash around in your bank accounts. Bank statements from the last two or three months for all of your accounts (checking, savings, money market, and other accounts) will likely be reviewed as the lending institution makes decisions regarding your loan application. In order to eliminate fraud, lenders require a clear and consistent picture of how you earn your money and where additional funds come from. Even for innocent purposes, moving around finances or switching banks may make it more difficult for the lending institution to document your account history.
Don't give money directly to your seller (generally in the case of of "for sale by owner") for a "good faith" deposit. As a rule, your good faith money is yours, not the seller's up until the sale is final. Although your FSBO seller might not understand this, any good faith funds must be used for the buyer's closing expenses. We recommend that you put the deposit into a trust account, or get an attorney to hold it until closing. The contract should dictate where the funds go if the transaction does not go through.
Firelight Mortgage Consultants can walk you through the pitfalls of getting a mortgage. Call us: 3032282254.