What to Avoid During your Home Purchase
In the rush of excitement that comes with an accepted offer and a "yes" from the lender, some homebuyers make the mistake of carrying their enthusiasm straight to the mall or furniture store. Until your keys are in hand, there still remain some hoops to jump through. We have given you a list of actions below we suggest you stay away from when waiting for your loan to close.
Don't buy big-ticket items. It may be tempting to buy that new sofa for the soon-to-be-yours living room, but it's advisable to avoid making large buys like furniture, appliances, jewelry, or cars until closing. Your lender may send up red flags if you buy new electronics on your credit cards during your loan process. It's also a bad idea to make those large purchases using cash. Lenders are looking at your available cash when considering your loan.
Don't look for a new job. Lending Institutions feel comfortable seeing a consistent career history on your application. Getting a new job may not affect your ability to qualify for a loan - particularly if you are getting a bigger paycheck. But in some cases, getting a new career during the mortgage loan application process may bring concern and affect your approval.
Don't switch your accounts to a new bank or move around your money. Bank statements from the last few months for your accounts (savings, checking, money market, and others) will be analyzed as the lending institution makes decisions regarding your application. To eliminate potential fraud, most lending institutions need thorough paperwork to verify the source of all incoming funds. Even for innocent reasons, transferring money or switching banks might make it difficult for the lender to document your bank history.
Don't deliver a "good faith" deposit directly to the seller in a FSBO (for sale by owner) purchase. Your good faith deposit does not belong to the seller: it is actually yours until closing. Although your FSBO seller might not realize this, any earnest money must be applied to your closing expenses. An attorney or other type of neutral party can hold onto your earnest funds, or you may put them temporarily into a trust account until closing. Your purchase agreement should indicate who gets the earnest funds if the transaction fails.
Bright Vision Mortgage can walk you through the pitfalls of getting a mortgage. Give us a call: 9043423622.