Things to Avoid While Buying a New Home

With the thrill that comes with an accepted offer and a "yes" from the lender, some homebuyers make the mistake of carrying their enthusiasm straight to the mall or furniture store. There still remain a few major hurdles to jump before the keys are handed over. Here are some things to stay clear of before closing to be sure the transaction goes smoothly.

Don't buy luxury items. Although you will be planning ways to turn your new house into a showplace, try to stay away from major purchases like appliances, electronics, or expensive furnishings. You will also want to stay away from vacations and car purchases until the closing of your loan. Financing new Plasma TVs with a store card or a bank credit card could put your credit worthiness at risk during the time it means the most. It's also a bad idea to make those large purchases using cash. Lending Institutions are looking at your available cash when considering your loan.

Don't get a new job. Your recent career history should show stability. Finding a new job (particularly one with a bigger paycheck) may not jeopardize your ability to qualify for your mortgage. But for some people, getting a new job during the loan application process might raise concern and hinder your application.

Don't move finances around or change banks. Your lender will require you to submit recent bank statements on all of your accounts: checking, savings, money market, and other liquid assets. To eliminate fraud, lenders require clear documentation of how you earn your living and where additional money comes from. Switching banks or transferring finances to another account - even if its merely to consolidate funds - might 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. Your good faith deposit does not belong to the seller: it remains yours until the sale closes. Although some FSBO sellers may not understand this, any good faith funds must be used for the buyer's closing expenses. Get an attorney or other neutral person who can hold the funds or put them in a trust account until you close. If your sale falls through, your purchase contract should specify where your earnest money should go.

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