Don't Trip Yourself up While Buying a Home
What's better than buying a bunch of new furniture to go in your future home? Not much. But buying big ticket items before closing can be an error. Until the keys are handed over, there still remain some hoops to jump through. Below you'll find a list of actions to avoid during this crucial time of your home purchase.
Don't empty your wallet on big-ticket items You may be tempted to buy that new couch for the soon-to-be-yours living room, but it's advisable to stay away from making big ticket purchases like furniture, appliances, electronic equipment, or cars until your home loan closes. Your credit numbers could be altered suddenly if you purchase new furniture using credit cards. Using cash to purchase big-ticket items can even be an issue: many lenders consider your available cash when approving your mortgage loan.
Don't get a new career. Your recent work history should show consistency. Finding a new career (particularly one with a bump in salary) may not change your ability to qualify for a mortgage loan. But in some cases, switching jobs during the mortgage loan approval process may bring concern and stymie your application.
Don't switch your accounts to a new bank or move around your cash. Your lending institution will instruct the submission of recent bank statements for your accounts: savings, checking, money market, and other liquid assets. Your lending institution is looking for a consistent flow of your money over the pay period, in the interest of ruling out fraud. No matter the purpose, switching banks or moving money from one account to another could raise a red flag with your lender and slow down your loan process.
Don't deliver earnest money directly to the seller in a FSBO (for sale by owner) purchase. As a rule, your good faith deposit belongs to you, not to the seller until closing. Although some FSBO sellers may not understand this, any earnest money must be applied to the buyer's closing expenses. Find an attorney or other neutral party who will hang on to the funds or put them in a trust account until you close. The purchase contract should document to whom the money goes if the home purchase fails.
Bright Vision Mortgage can walk you through the pitfalls of getting a mortgage. Call us at (904) 342-3622.