Things to Avoid While Buying a New Home

What's better than buying a bunch of new furniture to go in your future home? Not much. But making large purchases before your loan closes could be trouble. Until closing, there are still some hurdles to jump. Here are some actions to refrain from during the home buying process to assure your transaction goes well.

Don't buy big-ticket items. It may be tempting to order that new easy-chair for the soon-to-be-yours living room, but it's best to stay away from making large buys like furniture, appliances, jewelry, or cars until closing. Your lender may send up red flags if you purchase your electronics on your credit cards in the middle of your loan process. Because lenders are examining your financial accounts, a large cash purchase is also not advised.

Don't get a new job. Lenders look for a consistent career history on your paperwork. Getting a new job may not compromise your ability to qualify for a mortgage loan - particularly if you are getting a bigger paycheck. However, switching jobs during your loan process might influence whether or not you are approved.

Don't move finances around or change banks. Most lenders will instruct the submission of recent bank statements for your accounts: checking, savings, money market, and other liquid assets. To detect fraud, lenders will need a consistent portrayal of how you earn your living and where any additional funds come from. Even for practical purposes, transferring cash or changing banks might make it more difficult for your lending institution to verify your account history.

Don't give a "good faith" deposit directly to the seller in a FSBO (for sale by owner) purchase. As a rule, your earnest money belongs to you, not to the seller up until the sale is final. Your earnest funds are to be used for your expenses upon closing; some sellers may not know this. Get an attorney or other neutral party who can hang on to the funds or put them in a trust account until closing. Should your sale fall through, your contract with the seller should document where your earnest money should go.

Turnkey Mortgage Group - NMLS#70160
David Yeary, Mortgage Loan Originator NMLS#1837725 can walk you through the pitfalls of getting a mortgage. Give us a call: 7133252099.