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, many homebuyers make the mistake of carrying their enthusiasm straight to the mall or appliance store. It's wise to remember that until closing, your lender is watching your accounts very closely. Here are some actions to avoid during the home buying process to be sure the transaction goes smoothly.
Don't empty your wallet on big-ticket items Although you may be planning ways to turn your new home into a castle, avoid big ticket purchases like appliances, electronics, or expensive furnishings. You will also want to avoid vacations and vehicle purchases until the closing of your loan. Your credit numbers could change suddenly if you purchase new furniture using plastic. Using cash to buy expensive items can even be a bad idea: many lenders consider your available cash when approving your application.
Don't look for a new job. Your recent career history should show consistency. Changing jobs may not affect your ability to qualify for a mortgage loan - particularly if you are getting a better salary. However, finding a new career during the application process might affect your approval.
Don't switch your accounts to a new bank or move around your cash. Your lender will ask for recent bank statements of accounts in your name: savings, checking, money market, and other assets. The lending institution needs to see a consistent rise and fall of your money over the pay period, in order to avoid fraud. Changing banks or transferring finances elsewhere - for whatever reason - might make it difficult for your lender to verify your funds.
Don't give earnest money directly to the seller in a FSBO (for sale by owner) purchase. Until the sale is complete, any good faith money actually belongs to you. Although your seller might not understand this, any earnest money should be used for the buyer's closing expenses. We recommend that you put the funds into a trust account, or get a neutral party, like a lawyer to hold them until the closing of the sale. If your home purchase fails, the purchase agreement should dictate where the good faith funds should go.
At Nationwide Home Loans, we answer questions about this process every day. Give us a call: 5626935048.