Things to Avoid While Purchasing a New Home

With the thrill that comes with an accepted offer and a "yes" from the lender, many homebuyers make the mistake of carrying their enthusiasm straight to the mall or furniture store. Keep in mind that until closing, your lender is watching your accounts very closely. We have listed some things below we suggest you avoid when waiting for closing.

Don't throw your money around. You may be itching to buy that new couch for the soon-to-be-yours living room, but it's advisable to stay away from making major purchases like furniture, appliances, electronic equipment, or cars until your home loan closes. Your lender may send up red flags if you finance your electronics on your credit cards during your loan process. It's also a mistake to make those large purchases with cash. Lenders are looking at your available cash when considering your loan.

Don't get a new job. Your recent job history should show consistency. Finding a new career (especially one with a better salary) may not hinder your ability to qualify for your loan. But for some, changing careers during the loan application process might bring concern and stymie your application.

Don't change banks or move money around in your bank accounts. While your lender reviews your loan package, you will probably be asked to provide bank statements for recent months on your checking and savings accounts, money market funds and other liquid wealth. To detect fraud, lenders look for clear documentation of how you earn your money and where any additional money comes from. Changing banks or moving money to another account - no matter the reason - might hinder the review of your accounts.

Don't give cash directly to your seller (commonly in the case of of "for sale by owner") to be considered earnest money. Your good faith money does not belong to the seller: it is actually yours until the sale closes. Although your FSBO seller may not know this, the earnest money must be applied to the buyer's closing expenses. We recommend that you put the funds into a trust account, or get an attorney to hold them until the deal closes. Your purchase contract should specify where the funds go if the transaction falls through.

Primemax Mortgage Group, NMLS#195523 can walk you through the pitfalls of getting a mortgage. Call us: 2565439211.