What to Avoid During a Home Purchase
Many new homebuyers make the mistake of rushing out to buy things to fill their home as soon as the seller accepts their offer and the lender approves the loan. Keep in mind that until closing, your lender is watching your finances very closely. Below you'll find a list of things to stay away from during this crucial time of your home purchase.
Don't empty your wallet on big-ticket items You may be tempted to buy that new sofa for the soon-to-be-yours parlor, but it's advisable to stay away from making large purchases like furniture, appliances, jewelry, or vacations until closing. Your credit numbers could be altered suddenly if you purchase new furniture using plastic. Using cash to purchase expensive items can even create an issue: most lenders take into consideration your available cash when approving your application.
Don't look for a new job. Lending Institutions feel comfortable seeing a consistent work history on your application. Getting a new job before you start the application process for a mortgage loan may not compromise your approval at all. However, switching jobs during the loan process could affect whether or not you are approved.
Don't move money around or switch banks. Bank statements from recent months for accounts in your name (checking, savings, money market, and others) will likely be analyzed as the lender makes decisions regarding your approval. To eliminate fraud, lenders want to see a clear and consistent picture of how you earn your living and where additional money comes from. Even for innocent reasons, moving around finances or switching banks might make it more difficult for your lender to confirm your account history.
Don't give your FSBO (for sale by owner) seller a "good faith" deposit, delivered to his door. Until closing, any good faith deposit remains yours. Some sellers may not realize that this good faith money should be used for your expenses upon closing. Find an attorney or other neutral party who is able to hold the deposit or put it in a trust account until you close. If your sale falls through, your contract with the seller should indicate where this earnest money should go.
Triumph Mortgage Inc can walk you through the pitfalls of getting a mortgage. Give us a call: 8327302000.