Things to Avoid While Purchasing a Home
In the rush of excitement that comes with an accepted offer and a "yes" from the lender, some homebuyers make the mistake of carrying their enthusiasm straight to the mall or furniture store. Until closing, there still remain some hurdles to jump. Here are some things to avoid during the home buying process to be sure the transaction goes well.
Don't make expensive purchases. You may be itching to turn your new kitchen into a home magazine cover, or celebrate your new castle, but keep away from big purchases like furniture, jewelry, appliances, or vacations until your loan closes. You may send up red flags with your lender if you finance your electronics on your credit cards during your loan process. It's even a red flag to make those large purchases using cash. Lenders are looking at your cash on hand when considering your loan.
Don't look for a new job. Lenders like to see a consistent career history on your application. Getting a new job before you start the application process for a loan may not affect your approval at all. However, getting a new job in the middle of your loan process might influence your approval.
Don't switch banks or move money around in your bank accounts. As your lending institution considers your mortgage application, you will likely be asked to submit bank statements for the last few months on your checking accounts, savings accounts, money market accounts and other liquid wealth. Your lending institution looks for a steady rise and fall of your money each month, in the interest of avoiding fraud. Switching banks or moving funds elsewhere - even if its merely to pool funds - may hinder the documentation of your funds.
Don't give cash directly to your seller (commonly in cases of "for sale by owner") for a "good faith" deposit. As a rule, your good faith deposit belongs to you, not the seller until the sale is final. Although some FSBO sellers may not know this, the good faith funds must go toward your closing expenses. We recommend that you put the deposit into a trust account, or get an attorney to hold it until the closing of the sale. The purchase agreement should specify who gets the money if the transaction falls through.
Sky Apply Mortgage, Inc can answer questions about these "Don'ts" and many others. Call us: (813) 200-7931.
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