Don't Trip Yourself up While Buying your New Home
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In the rush of excitement that comes with an accepted offer and a "yes" from the lender, many homebuyers make the error of taking their enthusiasm straight to the mall or furniture store. Keep in mind that until closing, your lender is watching your accounts very closely. We have listed some things below you will want to stay away from when waiting for closing.
Don't overspend on big-ticket items Although you may be planning ways to turn your new home into a showplace, try to stay away from big ticket purchases like appliances, electronics, or expensive furnishings. We also recommend that you stay away from vacations and car purchases until the closing of your loan. Your credit numbers could be altered suddenly if you purchase new furniture using credit cards. Using cash to purchase big items can even create an issue: most lenders take into consideration your available cash when approving your mortgage.
Don't go on a career search. Consistency in your job history is a positive thing to banks and other lenders. Finding a new job (particularly one with a better salary) may not jeopardize your ability to qualify for your mortgage loan. However, finding a new career during your application process may influence your approval.
Don't switch banks or move finances around in your bank accounts. Your lending institution will instruct the submission of recent bank statements for accounts in your name: checking, savings, money market, and other liquid assets. In order to detect fraud, lenders will need clear documentation of how you earn your money and where any additional money comes from. Changing banks or transferring funds elsewhere - for whatever reason - might make it difficult for the lender to document your funds.
Don't give your FSBO (for sale by owner) seller a "good faith" deposit, cash in hand. Until the sale is complete, the good faith deposit actually belongs to you. Your seller might not realize that any good faith funds should go toward your expenses upon closing. Get an attorney or other neutral person who can hang on to the deposit or place it in a trust account until closing. Your contract should document who gets the money if the home purchase fails.
Mid America Mortgage Company NMLS 150009 can walk you through the pitfalls of getting a mortgage. Give us a call at (866) 298-0700.