Don't Trip Yourself up While Buying a New Home
Some new homebuyers make the mistake of rushing out to buy new things for their home soon after the seller says "yes" and the lender approves their loan. Keep in mind that until you get the keys, your lender is watching your finances very closely. Here are some actions to stay clear of before closing to be sure the transaction goes smoothly.
Don't throw your money around. Although you will be listing ways to turn your new home into a castle, avoid major purchases like appliances, electronics, or expensive furnishings. You will also want to avoid vacations and vehicle purchases until the closing of your loan. Using plastic to buy furniture could jeopardize your lending process by distorting your numbers. Using cash to purchase expensive items can even create a problem: many lending institutions take into consideration your available cash when approving your mortgage loan.
Don't look for a new job. Your recent career history should show consistency. Getting a new job may not affect your ability to qualify for a mortgage loan - particularly if you are getting a bigger paycheck. However, if you switch careers before you qualify, your process could fail or be stalled.
Don't move cash around or switch banks. Bank statements from the last few months for all of your accounts (savings, checking, money market, and other assets) will likely be analyzed as the lender considers your loan application. In order to avoid fraud, lenders look for clear documentation of how you earn your money and where additional wealth comes from. Even for practical reasons, moving around cash or switching banks could make it harder for the lending institution to confirm your bank history.
Don't give earnest money 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 up until closing. Although your seller might not understand this, any earnest money must be applied to your closing expenses. An attorney or other type of neutral party can hold your earnest money, or you may put it temporarily into a trust account until you close. Your contract should dictate where the funds go if the transaction does not go through.
Sky Apply Mortgage, Inc can walk you through the pitfalls of getting a mortgage. Call us: (813) 200-7931.