Things to Avoid While Buying a Home
Some new homebuyers make the mistake of rushing out to buy new things for their home soon after the seller says "yes" and the loan is approved. There are still a few major hurdles to jump before the house is realy yours. Here are some actions to refrain from during the home buying process to assure your transaction goes well.
Don't overspend on big-ticket items Although you may be planning ways to turn your new home into a castle, try to stay away from major purchases like appliances, electronics, or expensive furnishings. You will also want to stay away from vacations and vehicle purchases until the closing of your loan. Financing new Plasma TVs with a store card or a bank credit card could put your credit worthiness at risk when you need it the most. Because lenders are perusing your bank accounts, a large cash purchase is also a mistake.
Don't get a new job. Consistency in your job history is a good thing to lenders. Getting a new job may not compromise your ability to qualify for a mortgage loan - especially if you are improving your salary. However, switching jobs in the middle of your loan process may influence whether or not you are approved.
Don't switch your accounts to a new bank or move around your finances. Bank statements from recent months for accounts in your name (checking, savings, money market, and other accounts) will likely be studied as the lender makes decisions regarding your loan application. To eliminate potential fraud, most lending institutions want a thorough paper trail to verify the source of all incoming funds. No matter the purpose, changing banks or transferring money may raise a red flag with your lender and slow your qualification process.
Don't deliver earnest money directly to the seller in a FSBO (for sale by owner) purchase. Until closing, any good faith money remains yours. Some FSBO sellers may not know that your good faith funds should be used for your expenses upon closing. We recommend that you put the funds into a trust account, or get an attorney to hold them until the closing of the sale. If your home purchase fails, your contract with the seller should specify to whom the good faith deposit should go.
Mutual Security Mortgage can walk you through the pitfalls of getting a mortgage. Give us a call: 3039317879.