Things to Avoid While Buying a New Home

Many new homebuyers make the mistake of rushing out to buy things to fill their home as soon as the seller says "yes" and the lender approves the loan. There are still a few major hurdles to jump before the house is realy yours. Below you'll find a list of actions to stay away from during this crucial time of your home purchase.

Don't buy big-ticket items. Although you may be dreaming of ways to turn your new home into a showplace, 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 the closing of your loan. Using plastic to buy furniture could jeopardize your lending process by distorting your numbers. It's also a red flag to make those large purchases using cash. Lending Institutions are examining your cash on hand when considering your loan.

Don't go on a job search. Your recent work history should show consistency. Getting a new job before you apply for a loan may not compromise your approval at all. But for some, getting a new career during the mortgage loan approval process may bring concern and hinder your approval.

Don't change banks or move cash around in your accounts. While the lender reviews your mortgage package, you will likely be instructed to produce bank statements for the last two or three months for your checking and savings accounts, money market accounts and other liquid assets. In order to avoid fraud, lenders will need a clear and consistent picture of how you earn your living and where any additional money comes from. Even for practical purposes, transferring funds or changing banks could make it difficult for your lender to verify your account history.

Don't give your FSBO (for sale by owner) seller a "good faith" deposit, delivered to his door. As a rule, your good faith money belongs to you, not to the seller until the sale is final. Your seller may not know that any good faith funds must go toward your expenses upon closing. A neutral party, like an attorney can hold onto your funds, or you may place them temporarily into a trust account until closing. Your contract should document who gets the deposit if the transaction fails.

Nationwide Home Loans can walk you through the pitfalls of getting a mortgage. Give us a call at 5626935048.