Things to Avoid While Buying a New Home
What's better than getting a bunch of new stuff to go in your future home? Nothing. But making large purchases before your loan closes could be trouble. Until the keys are handed over, there still remain some hurdles to jump. Here are some things to stay clear of before closing to assure your transaction goes well.
Don't empty your wallet on big-ticket items Although you may be dreaming of ways to turn your new home into a castle, try to stay away from major purchases like appliances, electronics, or furniture. You will also want to stay away from vacations and car purchases until your loan closes. Your credit numbers could be altered suddenly if you make a huge purchase using credit cards. It's also a mistake to make those big purchases using cash. Lending Institutions are looking at your cash on hand when considering your loan.
Don't look for a new job. Your recent job history should show consistency. Finding a new career (especially one with a bigger paycheck) may not jeopardize your ability to qualify for your mortgage loan. However, switching jobs in the middle of the approval process could influence your approval.
Don't change banks or move cash around in your bank accounts. Most lenders will require you to provide recent bank statements of your accounts: savings, checking, money market, and other assets. In order to eliminate fraud, lenders need a consistent portrayal of how you earn your money and where additional funds come from. Switching banks or moving finances elsewhere - for whatever reason - might make it difficult for your lender to document your funds.
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 remains yours until the transaction is final. Any earnest funds are to be applied to your expenses upon closing; some FSBO sellers may not realize this. Get a lawyer or other neutral person who can hang on to the deposit or place it in a trust account until you close. The contract should specify who gets the money if the home purchase does not go through.
Greystone Loans, Inc. can walk you through the pitfalls of getting a mortgage. Call us: 9094671090.