Things to Avoid While Purchasing a New Home

With the thrill that comes with an accepted offer and a "yes" from the lender, many homebuyers make the mistake of taking their enthusiasm straight to the mall or furniture store. There still remain a few major hurdles to jump before the house is realy yours. We have listed some actions below we suggest you avoid when waiting for closing.

Don't buy big-ticket items. You may be itching to buy that new sofa for the soon-to-be-yours parlor, but it's best to avoid making big ticket purchases like furniture, appliances, electronic equipment, or vacations until closing. Your lender may send up red flags if you buy new appliances on your credit cards during your loan process. Because lending institutions are examining your financial accounts, a large cash purchase is also a mistake.

Don't get a new job. Lenders feel comfortable seeing a consistent career history on your application forms. Getting a new job may not jeopardize your ability to qualify for a mortgage loan - especially if you are improving your salary. However, switching careers during the application process could affect whether or not you are approved.

Don't move money around or change banks. Your lender will require you to provide recent bank statements for all of your accounts: savings, checking, money market, and other assets. To avoid potential fraud, most lenders want thorough paperwork to document the source of all incoming funds. Switching banks or moving funds to another account - no matter the reason - may hinder the documentation of your funds.

Don't give earnest money directly to the seller in a FSBO (for sale by owner) purchase. Your good faith deposit does not belong to the seller: it is actually yours until the transaction is final. Although your FSBO seller may not understand this, your earnest money should be applied to the buyer's closing expenses. A neutral party, like an attorney can hold your funds, or you may put them temporarily into a trust account until closing. The contract should specify to whom the money goes if the transaction fails.

Integrated Financial Solutions, LLC can answer questions about these "Don'ts" and many others. Give us a call: 4104614043.