Don't Trip Yourself up While Buying your New Home

In the rush of excitement that comes with an accepted offer and a "yes" from the lender, many homebuyers make the error of taking their enthusiasm straight to the mall or furniture store. There are still a few major hurdles to jump before the house is realy yours. Below you'll find a list of things to stay away from during this crucial time of your home purchase.

Don't buy luxury items. You may be itching to order that new Turkish rug for the soon-to-be-yours den, but it's advisable to stay away from making large buys like furniture, appliances, electronic equipment, or cars until closing. Financing your Plasma TVs 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 expensive items can also create a bad idea: many lenders take into consideration your available cash when approving your mortgage.

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

Don't move finances around or change banks. While the lender reviews your loan package, you will probably be instructed to produce bank statements for the last few months on your checking accounts, savings accounts, money market accounts and other liquid wealth. To detect fraud, lenders want to see clear documentation of how you earn your money and where additional funds come from. Changing banks or transferring money to another account - even if its merely to pool funds - might hinder the review of your funds.

Don't give your FSBO (for sale by owner) seller a "good faith" deposit, cash in hand. Your good faith money does not belong to the seller: it remains yours until the sale closes. Any good faith money is to be used for your expenses closing; some individual sellers may not know this. You'll need to put the deposit into a trust account, or get an attorney to hold it until closing. The purchase contract should dictate who keeps the deposit if the home purchase fails.

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