Things to Avoid While Purchasing a New Home

In the rush of excitement that comes with an accepted offer and a "yes" from the lender, many homebuyers make the error of taking their enthusiasm straight to the mall or appliance store. Until the house is really yours, there are still some hurdles to jump. Below you'll find a list of actions to avoid during this crucial time of your home purchase.

Don't buy big-ticket items. 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. We also recommend that you stay away from vacations and vehicle purchases until the closing of your loan. Your credit numbers could be altered suddenly if you make a huge purchase using credit cards. It's also a mistake to make those large purchases with cash. Lenders are looking at your cash reserve when considering your loan.

Don't look for a new career. Stability in your job history is a positive thing to lenders. Finding a new job (especially one with a better salary) may not affect your ability to qualify for your loan. But for some, changing careers during the mortgage loan application process might bring concern and affect your approval.

Don't switch your accounts to a new bank or move around your money. Bank statements from the last two or three months for your accounts (checking, savings, money market, and others) will likely be studied as the lending institution considers your mortgage application. The lending institution will need to see a steady flow of your funds each month, in the interest of avoiding fraud. Changing banks or moving funds elsewhere - even if its just to pool funds - may make it difficult for the lender to verify your funds.

Don't give funds directly to your seller (usually in cases of "for sale by owner") for earnest money. Your good faith deposit does not belong to the seller: it is actually yours until closing. Although some individual sellers might not understand this, your good faith money must go toward your closing expenses. A neutral party, like an attorney can hold onto your earnest money, or you may put it temporarily into a trust account until you close. Should your home purchase fail, your purchase agreement should dictate to whom your good faith deposit should go.

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