Don't Trip Yourself up While Buying a New 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 appliance store. Until the house is really yours, there still remain some hurdles to jump. We have listed some things below you will want to avoid when waiting for your loan to close.
Don't buy big-ticket items. Although you will be listing ways to turn your new house into a castle, avoid big ticket purchases like appliances, electronics, or expensive furnishings. We also recommend that you avoid vacations and car purchases until your loan closes. You may send up red flags with your lender if you purchase new electronics on your credit cards in the middle of your loan process. Because lending institutions are examining your bank accounts, a large cash purchase is also a mistake.
Don't look for a new job. Your recent career history should show stability. Finding a new job (especially one with a bump in salary) may not affect your ability to qualify for your loan. But for some people, getting a new career during the mortgage application process could raise concern and hinder your application.
Don't switch your accounts to a new bank or move around your finances. Most lenders will instruct the submission of recent bank statements on your accounts: savings, checking, money market, and other liquid assets. To avoid fraud, lenders look for clear documentation of how you earn your money and where additional money comes from. Switching banks or moving finances to another account - even if its merely to pool funds - may hinder the documentation of your accounts.
Don't hand over a "good faith" deposit directly to the seller in a FSBO (for sale by owner) purchase. As a rule, your good faith deposit is yours, not the seller's up until closing. Although your FSBO seller might not know this, the good faith money should be applied to your closing expenses. Get an attorney or other neutral party who is able to hang on to the money or place it in a trust account until closing. The final disposition of earnest money, if your home purchase falls through, should be specified in the contract with your seller.
New Millennium Mortgage Co. NMLS: 331173 can walk you through the pitfalls of getting a mortgage. Give us a call: (941) 366-5800.
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