Things to Avoid While Buying a New Home

Many new homebuyers make the mistake of rushing out to buy things to fill their home as soon as the seller accepts their offer and the loan is approved. It's best to remember that until closing, your lender is watching you very closely. Below you'll find a list of things to avoid during this critical time of your home purchase.

Don't throw your money around. You may be itching to turn your new kitchen into a showplace, or celebrate your new castle, but stay away from major purchases like furniture, cars, appliances, or vacations until closing. Your credit numbers could be altered suddenly if you purchase new furniture using plastic. Because lending institutions are looking closely at your bank accounts, a large cash purchase is also a bad idea.

Don't look for a new job. Consistency in your career history is a good thing to banks and other lenders. Changing jobs may not affect your ability to qualify for a loan - particularly if you are getting a bigger paycheck. However, if you switch careers before you qualify, your process could fail or be bogged down.

Don't move cash around or change banks. Bank statements from the last few months for accounts in your name (checking, savings, money market, and other accounts) will be studied as the lending institution considers your application. Your lender hopes to see a consistent flow of your money each month, in the interest of avoiding fraud. Changing banks or transferring finances elsewhere - for whatever purpose - could hinder the review of your accounts.

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 is yours, not the seller's until the deal closes. Your earnest money is to go toward your expenses closing; a individual seller may not realize this. You'll want to put the funds into a trust account, or get a neutral person, like an attorney to hold them until the deal closes. The contract should document where the money goes if the home purchase does not go through.

At Integrated Financial Solutions, LLC, we answer questions about this process every day. Give us a call at 4104614043.


Integrated Financial Solutions, LLC

11110 Dovedale Ct 28A
Marriottsville, MD - Maryland 21104