Things to Avoid While Purchasing a New Home
In the rush of excitement that comes with an accepted offer and a "yes" from the lender, some homebuyers make the error of taking their enthusiasm straight to the mall or furniture store. Until your keys are in hand, there still remain some hurdles to jump. Below you'll find a list of actions to avoid during this critical time of your home purchase.
Don't buy luxury items. You may be itching to turn your new living room into a home magazine cover, or celebrate your new dream home, but stay away from major purchases like furniture, cars, appliances, or vacations until the loan closes. Your credit numbers could change suddenly if you purchase new furniture using credit cards. Because lending institutions are perusing your financial accounts, a large cash purchase is also not advised.
Don't go on a job search. Consistency in your work history is a positive thing to lenders. Finding a new job (especially one with a better salary) may not change your ability to qualify for your mortgage loan. But for some people, changing jobs during the mortgage application process may bring concern and stymie your application.
Don't take your accounts to a new bank or move around your finances. Bank statements from recent months for all of your accounts (checking, savings, money market, and other assets) will likely be studied as the lender makes decisions regarding your loan application. In order to avoid fraud, lenders want to see a clear and consistent picture of how you earn your money and where any additional wealth comes from. No matter the purpose, switching banks or transferring funds could raise a red flag with the lender and slow down your application process.
Don't give your FSBO (for sale by owner) seller a "good faith" deposit, cash in hand. As a rule, your earnest money is yours, not the seller's up until closing. The good faith funds are to go toward your expenses closing; some FSBO sellers may not know this. We recommend that you put the money into a trust account, or get a neutral party, like an attorney, to hold it until closing. Your contract should specify who gets the deposit if the home purchase falls through.
Primemax Mortgage Group, NMLS#195523 can walk you through the pitfalls of getting a mortgage. Give us a call at 2565439211.