Don't Trip Yourself up While Buying a New Home
Some 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 lender approves the loan. There still remain a few major hurdles to jump before the house is realy yours. We have given you a list of actions below we suggest you stay away from when waiting for closing.
Don't throw your money around. You may be itching to turn your new kitchen into a showplace, or celebrate your new dream home, but keep away from major purchases like furniture, jewelry, appliances, or vacations until the loan closes. Using plastic to buy furniture could jeopardize your loan process by altering your numbers dramatically. Using cash to buy big items can even be a bad idea: many banks consider your cash reserve when approving your mortgage loan.
Don't go on a career search. Your recent work history should show consistency. Getting a new job before you apply for a mortgage may not compromise your approval at all. But in some cases, changing careers during the mortgage approval process may bring concern and stymie your application.
Don't switch your accounts to a new bank or move around your finances. While the lending institution considers your loan application, you will probably be required to submit bank statements for the last few months on your checking and savings accounts, money market accounts and other liquid wealth. In order to avoid fraud, lenders will need a clear and consistent picture of how you earn your money and where additional wealth comes from. Even for practical purposes, moving around money or switching banks may make it harder for the lender to document your account history.
Don't give your FSBO (for sale by owner) seller earnest money, delivered to his door. Until closing, the good faith deposit actually belongs to you. The good faith funds are to go toward your expenses upon closing; some sellers might not realize this. Get an attorney or other neutral person who will hang on to the deposit or place it in a trust account until you close. Your purchase contract should specify where the funds go if the home purchase fails.
Integrated Financial Solutions, LLC can answer questions about these "Don'ts" and many others. Call us at 4104614043.