Don't Trip Yourself up While Buying your Home
What's better than getting a bunch of new stuff to adorn your future home? Not much. But making big purchases before closing could be trouble. Until the house is really yours, there still remain some hurdles to jump. Below you'll find a list of things to avoid during this critical time of your home purchase.
Don't throw your money around. Although you may be planning ways to turn your new home into a castle, try to stay away from big ticket purchases like appliances, electronics, or expensive furnishings. We also recommend that you avoid vacations and car purchases until your loan closes. Financing your Plasma TVs with a store card or a bank credit card could jeopardize your credit worthiness when you need it the most. Because lenders are perusing your financial accounts, a large cash purchase is also a mistake.
Don't get a new job. Stability in your job history is a positive thing to lending institutions. Changing jobs may not jeopardize your ability to qualify for a mortgage loan - especially if you are improving your salary. However, switching careers during your approval process could affect whether or not you are approved.
Don't change banks or move finances around in your accounts. Most lenders will ask for recent bank statements of your accounts: savings, checking, money market, and other assets. In order to detect fraud, lenders want to see clear documentation of how you earn your living and where any additional wealth comes from. No matter the reason, moving banks or transferring funds may raise a red flag with the lender and slow down your approval process.
Don't give your FSBO (for sale by owner) seller earnest money, made out directly to him. As a rule, your good faith money belongs to you, not the seller up until the sale is final. Although your FSBO seller might not realize this, the good faith money should go toward the buyer's closing expenses. A neutral party, like an attorney can hold onto your funds, or you may put them temporarily into a trust account until you close. Your contract should specify to whom the deposit goes if the transaction does not go through.
Alternative Mortgage Group can walk you through the pitfalls of getting a mortgage. Give us a call: 561-395-4264.