Don't Trip Yourself up While Buying your New Home
With the thrill that comes with an accepted offer and a "yes" from the lender, many homebuyers make the mistake of carrying their enthusiasm straight to the mall or appliance store. Until the house is really yours, there still remain some hurdles to jump. Below you'll find a list of things to avoid during this crucial time of your home purchase.
Don't make expensive purchases. Although you will be dreaming of ways to turn your new house into a castle, try to stay away from big ticket purchases like appliances, electronics, or expensive furnishings. You will also want to stay 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. Because lending institutions are perusing your financial accounts, a large cash purchase is also a bad idea.
Don't go on a career search. Lenders like to see a consistent job history on your paperwork. Finding a new career (especially one with a bump in salary) may not affect your ability to qualify for your loan. However, if you switch careers before your loan is approved, your loan process could fail or be stalled.
Don't take your accounts to a new bank or move around your money. Most lenders will require you to produce recent bank statements on all of your accounts: savings, checking, money market, and other liquid assets. To avoid fraud, lenders require clear documentation of how you earn your living and where additional funds come from. No matter the reason, changing banks or transferring money could raise a red flag with your lender and slow down your application process.
Don't give your FSBO (for sale by owner) seller earnest money, delivered to his door. Your good faith deposit does not belong to the seller: it is actually yours until the transaction is final. Some FSBO sellers may not realize that the good faith funds must go toward your expenses at closing. Get a lawyer or other neutral person who is able to hang on to the funds or place them in a trust account until closing. The contract should specify who gets the money if the home purchase falls through.
Hancock Mortgage Partners, LLC NMLS# 229844 can answer questions about these "Don'ts" and many others. Give us a call: 225 819 7670.