Don't Trip Yourself up While Buying your Home

In the rush of excitement that comes with an accepted offer and a "yes" from the lender, many homebuyers make the error of carrying their enthusiasm straight to the mall or furniture store. Until your keys are in hand, there are still some hoops to jump through. Below you'll find a list of things to stay away from during this critical time of your home purchase.

Don't make expensive purchases. Although you will be dreaming of ways to turn your new home into a showplace, avoid big ticket purchases like appliances, electronics, or furniture. You will also want to stay away from vacations and vehicle purchases until your loan closes. Financing your 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. Using cash to buy big items can even be a bad idea: most lending institutions take into consideration your available cash when approving your mortgage.

Don't go on a job search. Your recent job history should show consistency. Getting a new job may not compromise your ability to qualify for a mortgage loan - especially if you are getting a better salary. But in some cases, getting a new job during the mortgage approval process may bring concern and stymie your application.

Don't switch banks or move cash around in your accounts. Bank statements from the last few months for all of your accounts (checking, savings, money market, and other accounts) will probably be reviewed as the lending institution considers your loan application. In order to detect fraud, lenders will need clear documentation of how you earn your money and where any additional money comes from. Even for practical purposes, moving around money or changing banks might make it difficult for the lender to verify your bank history.

Don't give a "good faith" deposit directly to the seller in a FSBO (for sale by owner) purchase. As a rule, your good faith deposit belongs to you, not to the seller until the deal closes. Some FSBO sellers may not know that any good faith funds should be applied to your expenses upon closing. A neutral party, like an attorney can hang onto your earnest money, or you may put it temporarily into a trust account until you close. If your sale falls through, the contract with the seller should indicate to whom this good faith funds should go.

Integrated Financial Solutions, LLC can answer questions about these "Don'ts" and many others. Call us at 4104614043.

Integrated Financial Solutions, LLC

11110 Dovedale Ct 28A
Marriottsville, MD - Maryland 21104