Things to Avoid While Buying a New Home
What's better than getting a bunch of new furniture to go in your future home? Not much. But buying big ticket items before closing could be trouble. Keep in mind that until you get the keys, your lender is watching your finances very closely. We have given you a list of actions below we suggest you stay away from when waiting for closing.
Don't empty your wallet on big-ticket items Although you may be listing ways to turn your new home into a showplace, avoid major purchases like appliances, electronics, or furniture. You will also want to avoid vacations and car purchases until the closing of your loan. Your lender may send up red flags if you buy new electronics on your credit cards during your loan process. Since lenders are perusing your bank accounts, a large cash purchase is also not advised.
Don't get a new job. Stability in your work history is a good thing to lenders. Finding a new job (particularly one with a better paycheck) may not affect your ability to qualify for a loan. However, getting a new career during the application process could influence your approval.
Don't move money around or switch banks. Bank statements from the last few months for accounts in your name (savings, checking, money market, and others) will probably be studied as the lending institution makes decisions regarding your application. To avoid potential fraud, most lenders need a detailed paper trail to verify the source of all cash. Even for practical purposes, transferring money or changing banks may make it harder for the lending institution to document your account history.
Don't give your FSBO (for sale by owner) seller earnest money, made out directly to him. Until closing, the good faith deposit actually belongs to you. Some sellers might not know that any good faith funds is to be applied to your expenses at closing. An attorney or other type of neutral party can hang onto your funds, or you may put them temporarily into a trust account until closing. Should your sale fall through, the contract with the seller should document where the good faith funds should go.
Sky Apply Mortgage, Inc can walk you through the pitfalls of getting a mortgage. Call us: (813) 200-7931.
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