Don't Trip Yourself up While Buying your New Home

With the thrill that comes with an accepted offer and a "yes" from the lender, many homebuyers make the mistake of taking their enthusiasm straight to the mall or furniture store. Keep in mind that until closing, your lender is watching your accounts very closely. Here are some actions to avoid before closing to assure the transaction goes smoothly.

Don't overspend on big-ticket items You may be itching to turn your new kitchen into a showplace, or celebrate your new dream home, but stay away from expensive purchases like furniture, cars, appliances, or vacations until closing. Your credit numbers could be altered suddenly if you make a huge purchase using credit cards. It's even a mistake to make those large purchases with cash. Lending Institutions are examining your available cash when considering your loan.

Don't look for a new job. Lending Institutions feel comfortable seeing a consistent job history on your paperwork. Getting a new job before you start the application process for a mortgage loan may not jeopardize your approval at all. But for some people, getting a new career during the mortgage approval process may bring concern and hinder your application.

Don't change banks or move cash around in your bank accounts. As your lending institution considers your mortgage application, you will likely be instructed to produce bank statements for the last two or three months on your saving and checking accounts, money market accounts and other liquid assets. In order to detect fraud, lenders want to see a consistent portrayal of how you earn your money and where additional wealth comes from. No matter the purpose, switching banks or moving funds from one account to another might raise a red flag with your lender and impede your qualification process.

Don't give money directly to your seller (generally in cases of "for sale by owner") to be considered earnest money. Until the completion of the deal, the good faith deposit remains yours. Some FSBO sellers may not know that the earnest money must go toward your expenses at closing. We recommend that you put the funds into a trust account, or get an attorney to hold them until closing. Your contract should dictate where the deposit goes if the home purchase fails.

Integrated Financial Solutions, LLC can answer questions about these "Don'ts" and many others. Call us: 4104614043.