Don't Trip Yourself up While Buying a New Home
What's better than getting a bunch of new furniture to go in your future home? Not much. But making big purchases before closing could be trouble. Until closing, there still remain some hurdles to jump. Below you'll find a list of things to stay away from during this critical time of your home purchase.
Don't empty your wallet on big-ticket items You may be itching to order that new easy-chair for the soon-to-be-yours parlor, but it's advisable to stay away from making big ticket buys like furniture, appliances, electronic equipment, or cars until your home loan closes. Using plastic to buy new living room furniture could compromise your loan process by changing your numbers dramatically. Using cash to purchase big items can even be an issue: many banks take into consideration your available cash when approving your loan.
Don't look for a new career. Lenders like to see a consistent career history on your application. Finding a new career (especially one with a better salary) may not affect your ability to qualify for your mortgage. But for some, changing careers during the mortgage application process may raise concern and affect your approval.
Don't move finances around or switch banks. Bank statements from recent months for accounts in your name (savings, checking, money market, and others) will likely be reviewed as the lending institution makes decisions regarding your approval. In order to detect fraud, lenders need clear documentation of how you earn your money and where any additional money comes from. Even for innocent reasons, transferring cash or switching banks might make it difficult for your lender to verify your bank history.
Don't give your FSBO (for sale by owner) seller a "good faith" deposit, cash in hand. Until the sale is complete, any good faith money actually belongs to you. Any good faith funds are to be applied to your expenses upon closing; some sellers may not realize this. Find an attorney or other neutral person who can hold the deposit or place it in a trust account until closing. The disposition of earnest funds, in the case of a failed transaction, should be included in the contract with your seller.
Triumph Mortgage Inc can walk you through the pitfalls of getting a mortgage. Call us: 8327302000.