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 accepts their offer and the loan is approved. There are still a few major hurdles to jump before your loan closes. Below you'll find a list of actions to stay away from during this critical time of your home purchase.
Don't make expensive purchases. You may be itching to turn your new living room into a showplace, or celebrate your new castle, but keep away from major purchases like furniture, cars, appliances, or vacations until the loan closes. Your credit numbers could be altered suddenly if you make a huge purchase using credit cards. It's even a bad idea to make those big purchases with cash. Lending Institutions are looking at your available cash when considering your loan.
Don't go on a career search. Lending Institutions like to see a consistent work history on your application. Getting a new job before you apply for a mortgage loan may not jeopardize your approval at all. However, switching jobs during your loan process could influence whether or not you are approved.
Don't switch banks or move cash around in your accounts. Bank statements from recent months for accounts in your name (savings, checking, money market, and other assets) will probably be studied as the lending institution makes decisions regarding your approval. In order to eliminate fraud, lenders require clear documentation of how you earn your living and where any additional money comes from. Switching banks or moving finances to another account - even if its merely to pool funds - may make it harder for your lender to document your funds.
Don't give funds directly to your seller (generally in the case of of "for sale by owner") to be considered earnest money. As a rule, your good faith deposit is yours, not the seller's up until the sale is final. Some FSBO sellers might not realize that your good faith funds is to go toward your expenses at closing. An attorney or other type of neutral party can hold your earnest funds, or you may place them temporarily into a trust account until closing. Should your sale fall through, your purchase agreement should specify to whom this good faith funds should go.
Triumph Mortgage Inc can answer questions about these "Don'ts" and many others. Give us a call at 8327302000.