Things to Avoid While Purchasing a 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 appliance store. Keep in mind that until you get the keys, your lender is watching your accounts very closely. We have given you a list of actions below you will want to avoid when waiting for your loan to close.

Don't throw your money around. Although you may be listing ways to turn your new house into a castle, avoid major purchases like appliances, electronics, or expensive furnishings. You will also want to avoid vacations and car purchases until your loan closes. Your credit numbers could be altered suddenly if you purchase new furniture using plastic. It's even a mistake to make those huge purchases with cash. Lenders are looking at your available cash when considering your loan.

Don't go on a career search. Lending Institutions feel comfortable seeing a consistent work history on your application. Getting a new career before you apply for a mortgage loan may not get in the way of your approval at all. However, if you switch careers before your loan is approved, your process could fail or be slowed down.

Don't switch your accounts to a new bank or move around your cash. Bank statements from the last two or three months for your accounts (checking, savings, money market, and other accounts) will probably be studied as the lender makes decisions regarding your approval. To detect fraud, lenders require a clear and consistent picture of how you earn your money and where additional funds come from. Even for practical purposes, transferring funds or changing banks may make it difficult for the lending institution to verify your account history.

Don't give your FSBO (for sale by owner) seller earnest money, cash in hand. As a rule, your good faith money is yours, not the seller's up until the deal closes. The good faith funds are to go toward your expenses upon closing; some sellers may not understand this. We recommend that you put the funds into a trust account, or get an attorney to hold them until closing. Should your sale fall through, the contract with the seller should specify where your earnest money should go.

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