Things to Avoid While Buying a New Home
Many new homebuyers make the mistake of rushing out to buy new things for their home soon after the seller accepts their offer and the loan is approved. Until your keys are in hand, there are still some hurdles to jump. Here are some things to avoid during the home buying process to be sure the transaction goes well.
Don't empty your wallet on big-ticket items You may be itching to turn your new living room into a showplace, or celebrate your new castle, but stay away from expensive purchases like furniture, jewelry, appliances, or vacations until closing. Your credit numbers could change suddenly if you purchase new furniture using plastic. It's even a red flag to make those large purchases using cash. Lending Institutions are looking at your available cash when considering your loan.
Don't look for a new career. Lenders look for a consistent career history on your application forms. Getting a new job may not compromise your ability to qualify for a mortgage loan - particularly if you are going to be making more money. However, if you switch careers before your loan is approved, your mortgage process could fail or be bogged down.
Don't move money around or change banks. Your lender will require you to provide recent bank statements on your accounts: checking, savings, money market, and other assets. To detect potential fraud, most lenders need thorough paperwork to determine the source of all funds. Switching banks or transferring funds elsewhere - for whatever purpose - might hinder the review of your funds.
Don't give your FSBO (for sale by owner) seller a "good faith" deposit, delivered to his door. Until closing, the good faith deposit actually belongs to you. Although your seller may not realize this, your good faith money must go toward your closing expenses. You'll want to put the money into a trust account, or get an attorney to hold it until the closing of the sale. Should your home purchase fail, your purchase contract should document to whom this earnest money should go.
The Mortgage Firm - Team Meyers can answer questions about these "Don'ts" and many others. Call us at (407) 889-4321.