Things to Avoid While Purchasing a Home

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 appliance store. Keep in mind that until your keys are in hand, your lender is watching your accounts very closely. We have listed some things below you will want to stay away from when waiting for closing.

Don't make expensive purchases. You may be itching to turn your new living room into a home magazine cover, or celebrate your new castle, but stay away from major purchases like furniture, jewelry, appliances, or vacations until closing. Your credit numbers could change suddenly if you purchase new furniture using plastic. It's also a bad idea to make those large purchases using cash. Lending Institutions are looking at your cash on hand when considering your loan.

Don't go on a job search. Lending Institutions feel comfortable seeing a consistent job history on your paperwork. Getting a new job may not compromise your ability to qualify for a mortgage loan - especially if you are improving your salary. But in some cases, changing careers during the mortgage loan approval process may raise concern and affect your application.

Don't take your accounts to a new bank or move around your cash. Most lenders will instruct the submission of recent bank statements of accounts in your name: savings, checking, money market, and other assets. Your lending institution looks for a consistent rise and fall of your funds each pay period, in order to rule out fraud. Changing banks or transferring finances elsewhere - no matter the purpose - may make it harder for your lender to review your funds.

Don't give a "good faith" deposit directly to the seller in a FSBO (for sale by owner) purchase. Your earnest money does not belong to the seller: it is actually yours until closing. Your seller might not realize that any earnest money must go toward your expenses at closing. You'll need to put the funds into a trust account, or get an attorney to hold them until closing. The disposition of earnest money, in the case of a failed transaction, should be indicated in the purchase agreement with the seller.

1st Credential Mortgage Inc can answer questions about these "Don'ts" and many others. Give us a call: 2817780805.