Things to Avoid While Purchasing a 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 furniture store. There are still a few major hurdles to jump before the house is realy yours. Here are some things to stay clear of during the home buying process to be sure your transaction goes smoothly.

Don't buy luxury items. You may be itching to order that new couch for the soon-to-be-yours living room, but it's best to stay away from making large purchases like furniture, appliances, electronic equipment, or cars until closing. Financing new Plasma TVs with a store card or a bank credit card could put your credit worthiness at risk when you need it the most. Since lending institutions are reviewing your financial accounts, a large cash purchase is also not advised.

Don't get a new career. Lending Institutions feel comfortable seeing a consistent career history on your application. Changing jobs may not compromise your ability to qualify for a mortgage loan - particularly if you are getting a better salary. However, switching jobs in the middle of the application process might affect whether or not you are approved.

Don't switch your accounts to a new bank or move around your money. Your lender will require you to submit recent bank statements on your accounts: checking, savings, money market, and other liquid assets. Your lending institution will need to see a consistent flow of your funds over the month, in the interest of avoiding fraud. Even for innocent purposes, moving around finances or switching banks could make it difficult for the lending institution to document your account history.

Don't give your FSBO (for sale by owner) seller earnest money, made out directly to him. Until closing, any good faith money actually belongs to you. The good faith money is to go toward your expenses upon closing; the FSBO seller might not understand this. It's best to put the money into a trust account, or get an attorney to hold it until the deal closes. The final disposition of good faith money, if your sale fails, should be specified in the purchase agreement with your seller.

Alternative Mortgage Group can walk you through the pitfalls of getting a mortgage. Call us at 561-395-4264.

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80 SW 14 Ave
Boca Raton, FL 33486