Don't Trip Yourself up While Buying a New Home

Many new homebuyers make the mistake of rushing out to buy things to fill their home as soon as the seller accepts their offer and the lender approves the loan. It's best to remember that until you get the keys, your lender is watching your accounts very closely. We have given you a list of things below you will want to avoid when waiting for your loan to close.

Don't throw your money around. Although you may be planning ways to turn your new house into a showplace, try to stay away from big ticket purchases like appliances, electronics, or expensive furnishings. You will also want to stay away from vacations and vehicle purchases until your loan closes. Using credit cards to buy furniture could compromise your loan process by distorting your numbers. Since lenders are looking closely at your financial accounts, a large cash purchase is also a bad idea.

Don't look for a new career. Lending Institutions look for a consistent job history on your application. Getting a new career before you start the application process for a loan may not affect your approval at all. However, if you switch careers before approval, your process could fail or be stalled.

Don't switch your accounts to a new bank or move around your cash. Bank statements from the last two or three months for all of your accounts (checking, savings, money market, and others) will be reviewed as the lender makes decisions regarding your application. To avoid fraud, lenders require clear documentation of how you earn your living and where any additional funds come from. Even for practical purposes, moving around money or changing banks might make it difficult for the lender to document your bank history.

Don't hand over a "good faith" deposit directly to the seller in a FSBO (for sale by owner) purchase. Until the completion of the deal, any good faith deposit remains yours. Your FSBO seller may not know that any earnest money should be applied to your expenses at closing. Get an attorney or other neutral person who can hold the deposit or put it in a trust account until closing. Your contract should document to whom the funds go if the transaction does not go through.

Sky Apply Mortgage, Inc can walk you through the pitfalls of getting a mortgage. Give us a call: 8132007931.