Things to Avoid While Purchasing a New Home
Some new homebuyers make the mistake of rushing out to buy new things for their home as soon as the seller says "yes" and the loan is approved. Until your loan closes, there still remain some hurdles to jump. Below you'll find a list of things to avoid during this critical time of your home purchase.
Don't overspend on big-ticket items Although you will be listing ways to turn your new home into a castle, try to stay away from big ticket purchases like appliances, electronics, or expensive furnishings. We also recommend that you keep away from vacations and car purchases until the closing of your loan. Financing your stainless steel appliances with a store card or a bank credit card could jeopardize your credit worthiness when you need it the most. Using cash to purchase big-ticket items can even create an issue: most lending institutions consider your cash reserve when approving your mortgage loan.
Don't get a new job. Your recent job history should show stability. Finding a new job (especially one with a bump in salary) may not affect your ability to qualify for your mortgage loan. However, if you switch careers before you qualify, your loan process could fail or be slowed down.
Don't switch your accounts to a new bank or move around your money. Most lenders will require you to produce recent bank statements for your accounts: savings, checking, money market, and other liquid assets. To avoid fraud, lenders want to see clear documentation of how you earn your living and where additional funds come from. Changing banks or transferring finances to another account - even if its merely to consolidate funds - may hinder the review of your funds.
Don't give your FSBO (for sale by owner) seller earnest money, delivered to his door. Until the completion of the deal, any earnest money remains yours. Any earnest money is to go toward your expenses closing; some sellers may not know this. Find a lawyer or other neutral person who can hang on to the money or put it in a trust account until closing. The final disposition of good faith funds, if your transaction falls through, should be included in the contract with your seller.
At Bright Vision Mortgage, we answer questions about this process every day. Give us a call at (904) 342-3622.