Don't Trip Yourself up While Buying a Home

Some new homebuyers make the mistake of rushing out to buy new things for their home as soon as the seller accepts their offer and the lender approves their loan. It's best to remember that until closing, your lender is watching you very closely. We have given you a list of things below we suggest you avoid when waiting for closing.

Don't throw your money around. Although you will be dreaming of ways to turn your new house into a showplace, avoid major purchases like appliances, electronics, or expensive furnishings. You will also want to avoid vacations and car purchases until the closing of your loan. Financing your furniture with a store card or a bank credit card could put your credit worthiness at risk during the time it means the most. Because lending institutions are perusing your financial accounts, a large cash purchase is also a mistake.

Don't go on a career search. Lending Institutions like to see a consistent job history on your application forms. Finding a new career (especially one with a bigger paycheck) may not hinder your ability to qualify for a mortgage loan. However, switching jobs during your approval process might influence your approval.

Don't move money around or switch banks. Your lending institution will instruct the submission of recent bank statements for your accounts: checking, savings, money market, and other assets. To eliminate fraud, lenders will need a consistent portrayal of how you earn your money and where additional funds come from. Switching banks or transferring funds elsewhere - for whatever purpose - could make it harder for the lender to review your funds.

Don't hand over 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 up until the deal closes. Some sellers might not realize that any good faith funds should be applied to your expenses at closing. We recommend that you put the funds into a trust account, or get a neutral party, like a lawyer to hold them until closing. The final disposition of earnest funds, in the case of a failed transaction, should be written in the purchase agreement with the seller.

At Bright Vision Mortgage, we answer questions about this process every day. Call us: 9043423622.

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St. Augustine, FL 32092