Things to Avoid While Buying a New 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 closing could be trouble. There still remain a few major hurdles to jump before the keys are handed over. We have given you a list of actions below we suggest you stay away from when waiting for closing.

Don't throw your money around. Although you may be dreaming of ways to turn your new home into a castle, avoid big ticket purchases like appliances, electronics, or expensive furnishings. You will also want to keep away from vacations and car purchases until your loan closes. Your credit numbers could be altered suddenly if you make a huge purchase using credit cards. Since lenders are perusing your bank accounts, a large cash purchase is also a mistake.

Don't get a new job. Consistency in your career history is a good thing to lending institutions. Getting a new job before you apply for a mortgage may not jeopardize your approval at all. However, switching careers in the middle of your loan process could influence whether or not you are approved.

Don't move cash around or switch banks. Most lenders will ask for recent bank statements on accounts in your name: checking, savings, money market, and other assets. In order to avoid fraud, lenders require a clear and consistent picture of how you earn your living and where additional wealth comes from. No matter the purpose, changing banks or transferring money may raise a red flag with the lender and slow down your qualification process.

Don't deliver earnest money directly to the seller in a FSBO (for sale by owner) purchase. Your good faith money does not belong to the seller: it remains yours until closing. The good faith money is to go toward your expenses closing; the FSBO seller might not understand this. Find an attorney or other neutral person who is able to hang on to the funds or place them in a trust account until you close. Should your sale fall through, the contract with the seller should document to whom this good faith deposit should go.

Not Your Average Lender can walk you through the pitfalls of getting a mortgage. Give us a call: 9722039033.