Things to Avoid While Buying a Home

Some new homebuyers make the mistake of rushing out to buy new things for their home soon after the seller accepts their offer and the loan is approved. Until the house is really yours, there are still some hurdles to jump. We have given you a list of actions below we suggest you avoid when waiting for your loan to close.

Don't overspend on big-ticket items You may be itching to turn your new living room into a showplace, or celebrate your new dream home, but keep away from major purchases like furniture, jewelry, appliances, or vacations until closing. Your credit numbers could be altered suddenly if you make a huge purchase using plastic. It's also a red flag to make those big purchases using cash. Lenders are examining your available cash when considering your loan.

Don't look for a new job. Lending Institutions like to see a consistent job history on your application. Finding a new job (particularly one with a better salary) may not affect your ability to qualify for a loan. However, getting a new job during your application process could influence whether or not you are approved.

Don't take your accounts to a new bank or move around your cash. Your lending institution will require you to submit recent bank statements for your accounts: checking, savings, money market, and other assets. To detect fraud, lenders want to see a consistent portrayal of how you earn your living and where any additional funds come from. Switching banks or transferring funds elsewhere - no matter the reason - could hinder the documentation of your accounts.

Don't give your FSBO (for sale by owner) seller earnest money, cash in hand. Until the completion of the deal, any good faith money actually belongs to you. Although your seller might not realize this, any good faith funds must be used for your closing expenses. Find an attorney or other neutral person who will hang on to the funds or place them in a trust account until you close. Your purchase contract should dictate to whom the funds go if the home purchase does not go through.

Integrated Financial Solutions, LLC can walk you through the pitfalls of getting a mortgage. Give us a call at 4104614043.