Don't Trip Yourself up While Buying a Home
 |
 |
||
 |
Looking for a mortgage loan? We can help! Give us a call at 800-374-0046. Ready to get started? Apply Now. | ||
| |||
| |||
What's better than buying a bunch of new furnishings to go in your future home? Not much. But buying big ticket items before closing could be trouble. There still remain a few major hurdles to jump before the house is really yours. Here are some things to refrain from during the home buying process to assure your transaction goes smoothly.
Don't overspend on big-ticket items You may be itching to turn your new kitchen into a home magazine cover, or celebrate your new dream home, but stay away from big purchases like furniture, jewelry, appliances, or vacations until closing. Financing new Plasma TVs with a store card or a bank credit card could jeopardize your credit worthiness when you need it the most. Since lending institutions are reviewing your financial accounts, a large cash purchase is also not advised.
Don't get a new job. Lenders look for a consistent work history on your application forms. Getting a new job before you start the application process for a mortgage loan may not jeopardize your approval at all. But for some people, changing careers during the loan approval process might bring concern and hinder your approval.
Don't take your accounts to a new bank or move around your finances. Bank statements from recent months for your accounts (checking, savings, money market, and others) will probably be analyzed as the lender considers your loan application. The lending institution looks for a steady rise and fall of your money over the pay period, in the interest of avoiding fraud. Even for innocent purposes, moving around funds or changing banks could make it harder for the lending institution to document your account history.
Don't give a "good faith" deposit directly to the seller in a FSBO (for sale by owner) purchase. Until the sale is complete, the earnest money actually belongs to you. Although your seller may not understand this, your earnest money must go toward the buyer's closing expenses. A neutral party, like an attorney can hold your earnest money, or you may put it temporarily into a trust account until closing. Should your sale fall through, your purchase agreement should specify to whom the earnest money should go.
