Don't Trip Yourself up While Buying your Home

What's better than buying a bunch of new furnishings to go in your future home? Not much. But buying big ticket items before your loan closes could be trouble. There still remain a few major hurdles to jump before your loan closes. Below you'll find a list of things to stay away from during this critical time of your home purchase.

Don't overspend on big-ticket items It may be tempting to order that new Turkish rug for the soon-to-be-yours den, but it's advisable to stay away from making major purchases like furniture, appliances, electronic equipment, or cars until your home loan closes. Financing new Plasma TVs with a store card or a bank credit card could put your credit worthiness at risk when you need it the most. It's even a bad idea to make those large purchases with cash. Lending Institutions are examining your available cash when considering your loan.

Don't get a new job. Lending Institutions look for a consistent career history on your application forms. Getting a new career before you apply for a mortgage loan may not compromise your approval at all. However, switching careers during your application process may influence whether or not you are approved.

Don't switch your accounts to a new bank or move around your finances. As your lending institution considers your mortgage application, you will likely be instructed to submit bank statements for recent months for your saving and checking accounts, money market funds and other liquid assets. Your lender wants to see a consistent rise and fall of your money each month, in the interest of ruling out fraud. No matter the purpose, moving banks or transferring money might raise a red flag with the lender and impede your loan process.

Don't give your FSBO (for sale by owner) seller earnest money, delivered to his door. Your good faith deposit does not belong to the seller: it is actually yours until closing. Any earnest funds are to be used for your expenses upon closing; some sellers might not understand this. We recommend that you put the funds into a trust account, or get an attorney to hold them until closing. The disposition of good faith money, in the case of a failed transaction, should be documented in the contract with the seller.

Sky Apply Mortgage, Inc can answer questions about these "Don'ts" and many others. Call us: 8132007931.