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, some homebuyers make the error of taking their enthusiasm straight to the mall or appliance store. There are still a few major hurdles to jump before the keys are handed over. We have given you a list of actions below we suggest you avoid when waiting for your loan to close.
Don't buy big-ticket items. You may be itching to turn your new kitchen into a home magazine cover, or celebrate your new castle, but keep away from big purchases like furniture, jewelry, appliances, or vacations until your loan closes. Your credit numbers could be altered suddenly if you purchase new furniture using credit cards. It's even a mistake to make those big-ticket purchases using cash. Lenders are looking at your cash on hand when considering your loan.
Don't go on a career search. Your recent job history should show stability. Getting a new job may not jeopardize your ability to qualify for a loan - especially if you are going to be making more money. However, if you switch careers before you qualify, your process could fail or be stalled.
Don't switch banks or move money around in your bank accounts. Bank statements from the last two or three months for your accounts (checking, savings, money market, and other accounts) will be reviewed as the lending institution considers your approval. To avoid fraud, lenders require clear documentation of how you earn your living and where additional funds come from. No matter the reason, switching banks or transferring funds may raise a red flag with the lender and impede your application process.
Don't hand over a "good faith" deposit directly to the seller in a FSBO (for sale by owner) purchase. Your good faith deposit does not belong to the seller: it is actually yours until closing. Some sellers may not know that the earnest money is to go toward your expenses at closing. Get a lawyer or other neutral person who is able to hang on to the funds or put them in a trust account until closing. Should your sale fall through, the purchase contract should indicate to whom your earnest money should go.
Mario Vega can answer questions about these "Don'ts" and many others. Call us: 877-310-6200.
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