What to Avoid During your Home Purchase

With the thrill that comes with an accepted offer and a "yes" from the lender, some homebuyers make the error of carrying their enthusiasm straight to the mall or appliance store. Until the house is really yours, there still remain some hoops to jump through. Here are some things to refrain from during the home buying process to be sure the transaction goes well.

Don't throw your money around. You may be itching to turn your new kitchen into a home magazine cover, or celebrate your new dream home, but stay away from major purchases like furniture, jewelry, appliances, or vacations until your loan closes. Financing new stainless steel appliances with a store card or a bank credit card could put your credit worthiness at risk when you need it the most. It's even a red flag to make those large purchases with cash. Lenders are examining your available cash when considering your loan.

Don't look for a new job. Your recent career history should show consistency. Finding a new job (particularly one with a bump in salary) may not affect your ability to qualify for a mortgage loan. But in some cases, changing jobs during the mortgage application process might raise concern and affect your application.

Don't move money around or change banks. Bank statements from the last few months for all of your accounts (savings, checking, money market, and other accounts) will probably be reviewed as the lending institution considers your mortgage application. Your lending institution wants to see a consistent rise and fall of your money each month, in the interest of avoiding fraud. No matter the reason, moving banks or moving money from one account to another can raise a red flag with your lender and slow your qualification 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. Some sellers might not know that your good faith funds should go toward your expenses upon closing. You'll need to put the funds into a trust account, or get a neutral party, like an attorney to hold them until the deal closes. Should your sale fall through, the purchase contract should document to whom the good faith deposit should go.

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