Don't Trip Yourself up While Buying a Home

Many 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. Keep in mind 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 closing.

Don't empty your wallet on big-ticket items You may be itching to order that new Turkish rug for the soon-to-be-yours den, but it's best to stay away from making large purchases like furniture, appliances, electronic equipment, or vacations until your home loan closes. Your lender may send up red flags if you purchase new appliances on your credit cards during your loan process. Using cash to buy big-ticket items can also create an issue: many lenders take into consideration your cash on hand when approving your mortgage.

Don't look for a new career. Your recent work history should show consistency. Changing jobs may not affect your ability to qualify for a loan - especially if you are going to be making more money. But for some, getting a new career during the loan application process might raise concern and stymie your application.

Don't switch banks or move money around in your bank accounts. Your lending institution will ask for recent bank statements of your accounts: savings, checking, money market, and other liquid assets. The lending institution is looking for a steady flow of your money over the month, in the interest of avoiding fraud. No matter the purpose, switching banks or transferring money may raise a red flag with your lender and impede your qualification process.

Don't give your FSBO (for sale by owner) seller earnest money, cash in hand. Until closing, the good faith money remains yours. Some sellers might not realize that the good faith funds should be applied to your expenses upon closing. A neutral party, like an attorney can hold your deposit, or you may put it temporarily into a trust account until closing. The disposition of earnest funds, in the case of a failed transaction, should be specified in the purchase agreement with your seller.

At Sky Apply Mortgage, Inc, we answer questions about this process every day. Call us at (813) 200-7931.

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