Don't Trip Yourself up While Buying your Home

Many new homebuyers make the mistake of rushing out to buy things to fill their home as soon as the seller accepts their offer and the lender approves the loan. Until your loan closes, there are still some hoops to jump through. Below you'll find a list of actions to avoid during this critical time of your home purchase.

Don't empty your wallet on 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 stay away from vacations and vehicle purchases until your loan closes. Your credit numbers could be altered suddenly if you purchase new furniture using credit cards. Using cash to buy expensive items can also create a mistake: most lenders look at your available cash when approving your mortgage loan.

Don't get a new career. Lenders like to see a consistent career history on your application forms. Getting a new career before you apply for a mortgage may not get in the way of your approval at all. But for some people, getting a new job during the loan approval process might bring concern and hinder your application.

Don't move finances around or change banks. While the lending institution reviews your mortgage package, you will probably be instructed to produce bank statements for recent months for your checking accounts, savings accounts, money market accounts and other liquid finances. Your lending institution is looking for a steady flow of your funds each pay period, in order to avoid fraud. Even for practical reasons, moving around money or switching banks might make it difficult for the lender to verify your account history.

Don't deliver 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 the deal closes. Your seller might not realize that these good faith funds is to go toward your expenses at closing. A neutral party, like an attorney can hang onto your funds, or you may place them temporarily into a trust account until closing. If your sale falls through, your purchase agreement should document where this earnest money should go.

Southwest Funding #841
Company NMLS # 303440 can walk you through the pitfalls of getting a mortgage. Give us a call: 5122916100.