Don't Trip Yourself up While Buying your 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 lender approves their loan. There still remain a few major hurdles to jump before closing. Below you'll find a list of things to stay away from during this critical time of your home purchase.

Don't throw your money around. Although you may be listing ways to turn your new home into a showplace, try to stay away from big ticket purchases like appliances, electronics, or furniture. You will also want to keep away from vacations and vehicle purchases until your loan closes. Your credit numbers could change suddenly if you make a huge purchase using credit cards. Using cash to purchase big items can also be a mistake: most banks consider your available cash when approving your mortgage.

Don't look for a new job. Your recent job history should show consistency. Finding a new career (particularly one with a bump in salary) may not jeopardize your ability to qualify for a loan. However, finding a new career during the application process may affect whether or not you are approved.

Don't change banks or move money around in your accounts. As the lending institution considers your mortgage loan package, you will likely be instructed to submit bank statements for the last few months for your saving and checking accounts, money market funds and other liquid finances. The lender will need to see a consistent rise and fall of your money over the pay period, in the interest of ruling out fraud. Switching banks or moving money elsewhere - no matter the reason - could make it difficult for the lender to verify your funds.

Don't give your FSBO (for sale by owner) seller a "good faith" deposit, delivered to his door. Until the sale is complete, any good faith deposit remains yours. Although your FSBO seller might not realize this, any good faith money should be used for your closing expenses. An attorney or other type of neutral party can hang onto your funds, or you may place them temporarily into a trust account until you close. The contract should indicate who keeps the money if the home purchase does not go through.

Bright Vision Mortgage can answer questions about these "Don'ts" and many others. Give us a call: (904) 342-3622.

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