Things to Avoid While Purchasing a Home
What's more fun than getting a bunch of new furnishings to adorn your future home? Nothing. But making large purchases before closing could be trouble. There are still a few major hurdles to jump before the house is realy yours. Below you'll find a list of things to stay away from during this critical time of your home purchase.
Don't buy big-ticket items. Although you will be listing ways to turn your new house into a showplace, try to stay away from major purchases like appliances, electronics, or furniture. We also recommend that you keep away from vacations and car purchases until your loan closes. Your credit numbers could change suddenly if you purchase new furniture using plastic. Using cash to purchase expensive items can even be a problem: many banks take into consideration your cash reserve when approving your mortgage loan.
Don't look for a new career. Lending Institutions like to see a consistent job history on your paperwork. Finding a new career (particularly one with a bump in salary) may not change your ability to qualify for your mortgage loan. However, switching careers in the middle of the loan process could influence whether or not you are approved.
Don't switch your accounts to a new bank or move around your money. While the lender reviews your mortgage loan application, you will likely be required to provide bank statements for the last two or three months for your checking accounts, savings accounts, money market funds and other liquid finances. Your lending institution looks for a consistent flow of your money over the month, in the interest of avoiding fraud. Switching banks or transferring finances to another account - no matter the purpose - might hinder the review of your accounts.
Don't give a "good faith" deposit directly to the seller in a FSBO (for sale by owner) purchase. As a rule, your good faith deposit belongs to you, not to the seller until closing. Although your seller might not realize this, any good faith funds should be applied to your closing expenses. It's wise to put the money into a trust account, or get a neutral party, like an attorney, to hold it until the deal closes. Your contract should specify to whom the funds go if the home purchase falls through.
Sky Apply Mortgage, Inc can answer questions about these "Don'ts" and many others. Give us a call: 8132007931.