What to Avoid During your Home Purchase

In the rush of excitement that comes with an accepted offer and a "yes" from the lender, many homebuyers make the error of carrying their enthusiasm straight to the mall or furniture store. There still remain a few major hurdles to jump before your loan closes. We have listed some 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 living room into a home magazine cover, or celebrate your new dream home, but stay away from big purchases like furniture, cars, appliances, or vacations until your loan closes. Your credit numbers could change suddenly if you make a huge purchase using plastic. Using cash to purchase big items can also create an issue: most lending institutions take into consideration your available cash when approving your mortgage.

Don't go on a job search. Lending Institutions feel comfortable seeing a consistent job history on your application. Changing jobs may not jeopardize your ability to qualify for a mortgage loan - especially if you are getting a better salary. But for some, changing jobs during the mortgage loan application process could bring concern and stymie your approval.

Don't switch banks or move money around in your accounts. Bank statements from recent months for your accounts (checking, savings, money market, and other accounts) will likely be reviewed as the lender makes decisions regarding your mortgage application. To avoid potential fraud, most lending institutions want a detailed paper trail to document the source of all cash. Switching banks or transferring money elsewhere - even if its just to pool funds - could hinder the review of your funds.

Don't give your FSBO (for sale by owner) seller earnest money, made out directly to him. Your good faith deposit does not belong to the seller: it remains yours until the transaction is final. Your FSBO seller might not know that your good faith money should be applied to your expenses upon closing. Find an attorney or other neutral party who is able to hang on to the funds or place them in a trust account until closing. If your sale falls through, the purchase contract should specify where the good faith funds should go.

Triumph Mortgage Inc can answer questions about these "Don'ts" and many others. Call us at 8327302000.