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 mistake of taking their enthusiasm straight to the mall or furniture store. Until the keys are handed over, there still remain some hurdles to jump. Here are some actions to avoid during the home buying process to assure the transaction goes well.
Don't empty your wallet on big-ticket items Although you may be listing ways to turn your new home into a castle, try to stay away from big ticket purchases like appliances, electronics, or furniture. You will also want to stay away from vacations and vehicle purchases until your loan closes. Using plastic to buy new living room furniture could jeopardize your loan process by altering your numbers dramatically. Because lending institutions are looking closely at your financial accounts, a large cash purchase is also a bad idea.
Don't get a new career. Your recent career history should show stability. Changing jobs may not jeopardize your ability to qualify for a loan - especially if you are improving your salary. However, getting a new career in the middle of the application process may affect whether or not you are approved.
Don't change banks or move finances around in your accounts. Your lending institution will instruct the submission of recent bank statements of accounts in your name: checking, savings, money market, and other liquid assets. To detect potential fraud, most loans want a detailed paper trail to document the source of all cash. No matter the reason, changing banks or transferring money may raise a red flag with your lender and impede your loan process.
Don't give your FSBO (for sale by owner) seller a "good faith" deposit, cash in hand. Until closing, any good faith deposit remains yours. The earnest funds are to be applied to your expenses closing; the FSBO seller might not know this. A neutral party, like an attorney can hang onto your funds, or you may place them temporarily into a trust account until you close. The final disposition of good faith money, in the case of a failed transaction, should be specified in the purchase agreement with your seller.
Price Mortgage Group LLC can walk you through the pitfalls of getting a mortgage. Call us at 405-513-7700.