Don't Trip Yourself up While Buying a Home
With the thrill 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. There are still a few major hurdles to jump before the house is realy yours. We have given you a list of things below you will want to stay away from when waiting for your loan to close.
Don't buy luxury items. You may be itching to turn your new kitchen into a showplace, or celebrate your new dream home, but keep away from major purchases like furniture, jewelry, appliances, or vacations until closing. Your credit numbers could change suddenly if you purchase new furniture using credit cards. It's even a mistake to make those large purchases with cash. Lenders are looking at your cash reserve when considering your loan.
Don't look for a new career. Consistency in your work history is a positive thing to banks and other lenders. Changing jobs may not compromise your ability to qualify for a mortgage loan - particularly if you are getting a bigger paycheck. But for some people, getting a new job during the mortgage loan application process might raise concern and hinder your approval.
Don't switch banks or move cash around in your accounts. Your lender will ask for recent bank statements of all of your accounts: checking, savings, money market, and other liquid assets. Your lender is looking for a steady flow of your money over the month, in order to rule out fraud. Even for innocent reasons, transferring money or switching banks could make it harder for the lending institution to document your bank history.
Don't give your FSBO (for sale by owner) seller earnest money, made out directly to him. Until the completion of the deal, the earnest money remains yours. Although your seller may not realize this, your earnest money should go toward your closing expenses. An attorney or other type of neutral party can hold onto your funds, or you may place them temporarily into a trust account until you close. Should your sale fall through, the purchase agreement should document to whom the good faith funds should go.
Mortgage Max Inc can answer questions about these "Don'ts" and many others. Give us a call: 760-547-2080.