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, many homebuyers make the error of carrying their enthusiasm straight to the mall or appliance store. It's best to remember that until closing, your lender is watching you very closely. We have given you a list of things below you will want to avoid when waiting for closing.
Don't make expensive purchases. Although you will be listing ways to turn your new home into a castle, try to stay away from big ticket purchases like appliances, electronics, or furniture. We also recommend that you keep away from vacations and car purchases until your loan closes. Your credit numbers could be altered suddenly if you make a huge purchase using credit cards. Using cash to purchase big-ticket items can even be a problem: most banks look at your cash on hand when approving your loan.
Don't go on a job search. Lenders feel comfortable seeing a consistent job history on your paperwork. Getting a new job may not compromise your ability to qualify for a loan - especially if you are getting a better salary. However, switching careers in the middle of your approval process may affect your approval.
Don't take your accounts to a new bank or move around your money. Bank statements from recent months for accounts in your name (checking, savings, money market, and other assets) will probably be reviewed as the lending institution considers your mortgage application. Your lender is looking for a steady flow of your money each month, in order to avoid fraud. Even for innocent reasons, transferring funds or changing banks might make it difficult for the lender to confirm your account history.
Don't give your FSBO (for sale by owner) seller earnest money, delivered to his door. As a rule, your good faith deposit belongs to you, not to the seller up until the sale is final. Although your FSBO seller may not know this, any good faith funds should be applied to the buyer's closing expenses. Get an attorney or other neutral person who is able to hang on to the deposit or place it in a trust account until you close. The purchase contract should indicate where the funds go if the transaction falls through.
At Primemax Mortgage Group, NMLS#195523, we answer questions about this process every day. Give us a call: 2565439211.