Don't Trip Yourself up While Buying your New Home
Many new homebuyers make the mistake of rushing out to buy things to fill their home soon after the seller accepts their offer and the lender approves the loan. It's best to remember that until your keys are in hand, your lender is watching your accounts very closely. We have given you a list of things below we suggest you avoid when waiting for closing.
Don't buy big-ticket items. You may be itching to turn your new living room into a home magazine cover, or celebrate your new dream home, but keep away from expensive purchases like furniture, jewelry, appliances, or vacations until closing. You may send up red flags with your lender if you buy new furniture on your credit cards in the middle of your loan process. It's even a red flag to make those large purchases with cash. Lending Institutions are looking at your available cash when considering your loan.
Don't go on a career search. Stability in your job history is a good thing to lenders. Getting a new job may not jeopardize your ability to qualify for a mortgage loan - particularly if you are getting a bigger paycheck. However, switching careers during the approval process could affect your approval.
Don't move finances around or switch banks. Your lender will ask for recent bank statements of all of your accounts: checking, savings, money market, and other liquid assets. To eliminate potential fraud, most lenders require a detailed paper trail to determine the source of all funds. Even for innocent reasons, transferring funds or changing banks might make it harder for the lender to confirm your account history.
Don't give money directly to your seller (generally in cases of "for sale by owner") for earnest money. Your good faith deposit does not belong to the seller: it remains yours until the sale closes. Your FSBO seller might not realize that the good faith money should be applied to your expenses upon closing. A neutral party, like an attorney can hang onto your funds, or you may place them temporarily into a trust account until closing. Your purchase contract should specify who keeps the deposit if the home purchase falls through.
Triumph Mortgage Inc can answer questions about these "Don'ts" and many others. Call us: 8327302000.