Things to Avoid While Buying a New Home

In the rush of excitement 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. Keep in mind that until you get the keys, your lender is watching your finances very closely. We have given you a list of actions below we suggest you avoid when waiting for your loan to close.

Don't empty your wallet 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 expensive purchases like furniture, cars, appliances, or vacations until the loan closes. You may send up red flags with your lender if you buy new furniture on your credit cards in the middle of your loan process. It's even a red flag to make those large purchases using cash. Lenders are examining your cash reserve when considering your loan.

Don't look for a new job. Stability in your job history is a good thing to lending institutions. Changing jobs may not jeopardize your ability to qualify for a mortgage loan - especially if you are improving your salary. However, if you switch careers before your loan is approved, your loan process could fail or be stalled.

Don't switch your accounts to a new bank or move around your finances. Most lenders will require you to submit recent bank statements for all of your accounts: checking, savings, money market, and other assets. To detect potential fraud, most lenders require detailed paperwork to verify the source of all incoming funds. No matter the purpose, switching banks or moving money from one account to another can raise a red flag with your lender and slow down your qualification process.

Don't give earnest money directly to the seller in a FSBO (for sale by owner) purchase. Your earnest money does not belong to the seller: it remains yours until the sale closes. The earnest money is to be applied to your expenses closing; a individual seller may not understand this. We recommend that you put the money into a trust account, or get a neutral party, like a lawyer, to hold it until the deal closes. The disposition of earnest money, in the case of a failed transaction, should be written in the contract with your seller.

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