Things to Avoid While Buying a New Home
Many new homebuyers make the mistake of rushing out to buy things to fill their home soon after the seller accepts their offer and the loan is approved. Keep in mind that until you get the keys, your lender is watching you very closely. Below you'll find a list of things to avoid during this critical time of your home purchase.
Don't throw your money around. You may be itching to turn your new living room into a showplace, or celebrate your new dream home, but keep away from big purchases like furniture, cars, appliances, or vacations until the loan closes. Your credit numbers could be altered suddenly if you purchase new furniture using credit cards. It's even a mistake to make those large purchases with cash. Lenders are examining your cash reserve when considering your loan.
Don't get a new career. Your recent career history should show consistency. Getting a new job before you apply for a loan may not compromise your approval at all. However, switching careers during your loan process could affect your approval.
Don't move finances around or change banks. While your lender considers your mortgage application, you will likely be required to provide bank statements for the last two or three months on your checking and savings accounts, money market funds and other liquid assets. In order to avoid fraud, lenders want to see a consistent portrayal of how you earn your money and where additional money comes from. Switching banks or transferring money to another account - even if its merely to consolidate funds - could hinder the review of your funds.
Don't deliver a "good faith" deposit directly to the seller in a FSBO (for sale by owner) purchase. As a rule, your good faith deposit is yours, not the seller's until closing. Although your FSBO seller might not understand this, your good faith funds should be used for your closing expenses. Get a lawyer or other neutral person who is able to hang on to the funds or put them in a trust account until closing. If your home purchase fails, your contract with the seller should specify where your good faith deposit should go.
Bright Vision Mortgage can answer questions about these "Don'ts" and many others. Give us a call at (904) 342-3622.