Don't Trip Yourself up While Buying a Home
What's better than getting a bunch of new furniture to adorn your future home? Not much. But buying big ticket items before closing could be trouble. It's best to remember that until your keys are in hand, your lender is watching you very closely. We have given you a list of actions below we suggest you stay away from when waiting for your loan to close.
Don't make expensive purchases. Although you will be dreaming of ways to turn your new home into a castle, try to stay away from major purchases like appliances, electronics, or expensive furnishings. We also recommend that you avoid vacations and car purchases until your loan closes. Your credit numbers could change suddenly if you make a huge purchase using credit cards. Using cash to buy big items can even be a mistake: most lending institutions take into consideration your cash reserve when approving your loan.
Don't go on a career search. Consistency in your career history is a positive thing to banks and other lenders. Changing jobs may not affect your ability to qualify for a loan - especially if you are getting a better salary. However, getting a new career during your approval process might influence whether or not you are approved.
Don't switch banks or move cash around in your bank accounts. Bank statements from recent months for your accounts (savings, checking, money market, and other assets) will be reviewed as the lending institution considers your loan application. To avoid potential fraud, most loans want a detailed paper trail to determine the source of all funds. Changing banks or moving money elsewhere - even if its only to consolidate funds - may make it difficult for the lender to document your funds.
Don't deliver earnest money directly to the seller in a FSBO (for sale by owner) purchase. Your good faith deposit does not belong to the seller: it remains yours until the transaction is final. Some sellers might not realize that your earnest money must be applied to your expenses upon closing. An attorney or other type of neutral party can hold onto your earnest money, or you may put it temporarily into a trust account until closing. Your purchase contract should indicate who gets the money if the home purchase does not go through.
Sky Apply Mortgage can walk you through the pitfalls of getting a mortgage. Give us a call: (813) 200-7931.
Got a Question?
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.