Things to Avoid While Purchasing a Home

With the thrill 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. It's wise to remember that until your keys are in hand, your lender is watching you very closely. Here are some things to refrain from during the home buying process to assure your transaction goes well.

Don't empty your wallet on big-ticket items You may be itching to buy that new Turkish rug for the soon-to-be-yours parlor, but it's best to stay away from making big ticket buys like furniture, appliances, jewelry, or vacations until your home loan closes. Using credit cards to buy new living room furniture could compromise your lending process by altering your numbers dramatically. It's also a red flag to make those large purchases with cash. Lending Institutions are examining your cash on hand when considering your loan.

Don't look for a new career. Stability in your work history is a good thing to lenders. Getting a new career before you start the application process for a loan may not compromise your approval at all. However, switching jobs in the middle of your application process may affect whether or not you are approved.

Don't move money around or change banks. Bank statements from the last two or three months for accounts in your name (savings, checking, money market, and other accounts) will probably be analyzed as the lending institution makes decisions regarding your mortgage application. To eliminate potential fraud, most loans require thorough paperwork to determine the source of all funds. No matter the reason, changing banks or transferring funds could raise a red flag with your lender and slow down your application process.

Don't give cash directly to your seller (usually in cases of "for sale by owner") to be considered earnest money. Until the completion of the deal, any good faith deposit remains yours. The good faith funds are to be applied to your expenses closing; some individual sellers might not understand this. A neutral party, like an attorney can hold your deposit, or you may put it temporarily into a trust account until you close. Your purchase contract should indicate who keeps the money if the transaction falls through.

At Primemax Mortgage Group, NMLS#195523, we answer questions about this process every day. Give us a call: 2565439211.

Primemax Mortgage Group, NMLS#195523

311 West Grand Ave
Rainbow City, AL 35906