Don't Trip Yourself up While Buying your Home

What's better than getting a bunch of new furniture to adorn your future home? Not much. But making large purchases before your loan closes could be trouble. There are still a few major hurdles to jump before your loan closes. We have listed some actions below we suggest you stay away from when waiting for your loan to close.

Don't throw your money around. Although you will be listing ways to turn your new home into a showplace, avoid big ticket purchases like appliances, electronics, or furniture. You will also want to avoid vacations and car purchases until your loan closes. Financing your bedroom furniture with a store card or a bank credit card could put your credit worthiness at risk during the time it means the most. Since lenders are perusing your financial accounts, a large cash purchase is also not advised.

Don't get a new job. Your recent work history should show consistency. Finding a new job (especially one with a bigger salary) may not affect your ability to qualify for a loan. However, if you switch careers before approval, your loan process could fail or be bogged down.

Don't move money around or change banks. Your lending institution will ask for recent bank statements on your accounts: checking, savings, money market, and other assets. To eliminate potential fraud, most lending institutions need detailed paperwork to verify the source of all cash. Switching banks or transferring finances elsewhere - no matter the purpose - could hinder the documentation of your funds.

Don't give your FSBO (for sale by owner) seller a "good faith" deposit, delivered to his door. Until closing, the good faith money actually belongs to you. Your earnest funds are to go toward your expenses upon closing; some individual sellers may not know this. A neutral party, like an attorney can hang onto your earnest money, or you may put it temporarily into a trust account until you close. Your contract should dictate to whom the funds go if the transaction does not go through.

At Nationwide Home Loans, we answer questions about this process every day. Give us a call: 5626935048.