Don't Trip Yourself up While Buying your Home
In the rush of excitement that comes with an accepted offer and a "yes" from the lender, some homebuyers make the error of taking their enthusiasm straight to the mall or appliance store. Until the house is really yours, there are still some hurdles to jump. Below you'll find a list of things to stay away from during this crucial time of your home purchase.
Don't throw your money around. Although you may be planning ways to turn your new house into a castle, avoid major purchases like appliances, electronics, or expensive furnishings. We also recommend that you keep away from vacations and vehicle purchases until the closing of your loan. Your credit numbers could be altered suddenly if you purchase new furniture using plastic. It's even a bad idea to make those big purchases with cash. Lenders are looking at your cash on hand when considering your loan.
Don't go on a career search. Lenders feel comfortable seeing a consistent career history on your application. Changing jobs may not jeopardize your ability to qualify for a mortgage loan - particularly if you are getting a bigger paycheck. But for some people, changing careers during the mortgage loan application process may bring concern and stymie your approval.
Don't change banks or move cash around in your accounts. While the lender considers your mortgage loan package, you will likely be required to produce bank statements for recent months for your checking and savings accounts, money market accounts and other liquid finances. To detect potential fraud, most loans need detailed paperwork to document the source of all cash. Even for practical reasons, moving around cash or switching banks may make it difficult for the lender to verify your account history.
Don't give your FSBO (for sale by owner) seller a "good faith" deposit, made out directly to him. Until closing, the good faith deposit remains yours. Although some FSBO sellers might not know this, the good faith money should be applied to your closing expenses. A neutral party, like an attorney can hold onto your earnest funds, or you may place them temporarily into a trust account until you close. The contract should specify who keeps the money if the home purchase fails.
Hancock Mortgage Partners, LLC NMLS# 229844 can walk you through the pitfalls of getting a mortgage. Give us a call: 225 819 7670.