Don't Trip Yourself up While Buying your 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. It's best to remember that until you get the keys, your lender is watching your finances very closely. Below you'll find a list of actions to avoid during this crucial time of your home purchase.
Don't overspend on big-ticket items You may be itching to turn your new living room into a showplace, or celebrate your new dream home, but keep away from big purchases like furniture, cars, appliances, or vacations until your loan closes. Your credit numbers could be altered suddenly if you purchase new furniture using plastic. It's also a mistake to make those big purchases with cash. Lenders are looking at your cash on hand when considering your loan.
Don't go on a career search. Stability in your job history is a positive thing to banks and other lenders. Finding a new career (especially one with a bigger salary) may not affect your ability to qualify for a mortgage loan. But for some people, changing jobs during the mortgage loan application process might raise concern and hinder your approval.
Don't change banks or move cash around in your accounts. Bank statements from the last few months for accounts in your name (checking, savings, money market, and others) will likely be analyzed as the lending institution considers your mortgage application. To avoid fraud, lenders look for a clear and consistent picture of how you earn your living and where any additional money comes from. Even for practical purposes, transferring cash or switching banks may make it harder for your lending institution to verify your account history.
Don't deliver a "good faith" deposit directly to the seller in a FSBO (for sale by owner) purchase. As a rule, your good faith deposit belongs to you, not to the seller up until the sale is final. A FSBO seller might not know that these good faith funds should go toward your expenses upon closing. It's advisable to put the money into a trust account, or get a neutral party, like an attorney, to hold it until the deal closes. Your purchase contract should specify who gets the money if the home purchase fails.
Price Mortgage Group LLC can walk you through the pitfalls of getting a mortgage. Call us at 405-513-7700.