Don't Trip Yourself up While Buying your Home

Some new homebuyers make the mistake of rushing out to buy things to fill their home as soon as the seller says "yes" and the lender approves the loan. There still remain a few major hurdles to jump before the keys are handed over. We have given you a list of things below we suggest you stay away from when waiting for your loan to close.

Don't make expensive purchases. You may be itching to turn your new living room into a showplace, or celebrate your new dream home, but keep away from major purchases like furniture, jewelry, appliances, or vacations until the loan closes. Your credit numbers could change suddenly if you make a huge purchase using plastic. It's even a red flag to make those large purchases using cash. Lending Institutions are examining your cash on hand when considering your loan.

Don't look for a new job. Stability in your career history is a good thing to banks and other lenders. Finding a new job (particularly one with a better paycheck) may not affect your ability to qualify for your mortgage. However, switching jobs in the middle of your application process may influence whether or not you are approved.

Don't switch banks or move money around in your accounts. While your lending institution considers your loan package, you will likely be asked to submit bank statements for the last two or three months on your checking and savings accounts, money market accounts and other liquid finances. To avoid potential fraud, most loans need a detailed paper trail to verify the source of all incoming funds. Switching banks or moving finances to another account - no matter the reason - could hinder the documentation of your accounts.

Don't hand over earnest money directly to the seller in a FSBO (for sale by owner) purchase. Until the completion of the deal, the earnest money remains yours. Your earnest funds are to go toward your expenses upon closing; some individual sellers may not know this. You'll need to put the funds into a trust account, or get a neutral party, like an attorney to hold them until closing. Your purchase contract should document who keeps the money if the transaction does not go through.

Sky Apply Mortgage, Inc can walk you through the pitfalls of getting a mortgage. Call us at 8132007931.