Things to Avoid While Purchasing a New Home
Many new homebuyers make the mistake of rushing out to buy new things for their home soon after the seller says "yes" and the lender approves their loan. There still remain a few major hurdles to jump before closing. We have listed some things below we suggest you avoid when waiting for closing.
Don't overspend on big-ticket items You may be itching to turn your new kitchen into a showplace, or celebrate your new castle, but stay away from major purchases like furniture, jewelry, appliances, or vacations until the 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 a problem: many lenders take into consideration your cash on hand when approving your loan.
Don't get a new job. Lenders like to see a consistent job history on your paperwork. Finding a new career (especially one with a better paycheck) may not change your ability to qualify for your mortgage. But for some, getting a new job during the mortgage loan application process may bring concern and stymie your application.
Don't switch banks or move money around in your accounts. Your lender will ask for recent bank statements of your accounts: savings, checking, money market, and other assets. To eliminate potential fraud, most lending institutions want a thorough paper trail to determine the source of all cash. No matter the purpose, changing banks or moving money from one account to another could raise a red flag with the lender and slow your application process.
Don't hand over a "good faith" deposit directly to the seller in a FSBO (for sale by owner) purchase. Until the completion of the deal, any good faith money remains yours. Although your FSBO seller might not understand this, your good faith funds should go toward the buyer's closing expenses. Get a lawyer or other neutral person who is able to hold the money or put it in a trust account until closing. Should your sale fall through, your contract with the seller should dictate where the good faith funds should go.
Bright Vision Mortgage can answer questions about these "Don'ts" and many others. Give us a call at (904) 342-3622.