Things to Avoid While Buying a New Home
Many new homebuyers make the mistake of rushing out to buy new things for their home soon after the seller accepts their offer and the lender approves the loan. Until closing, there are still some hoops to jump through. Below you'll find a list of actions to avoid during this crucial time of your home purchase.
Don't buy big-ticket items. It may be tempting to buy that new sofa for the soon-to-be-yours living room, but it's advisable to stay away from making large purchases like furniture, appliances, jewelry, or cars until your home loan closes. Your credit numbers could be altered suddenly if you purchase new furniture using plastic. It's also a red flag to make those huge purchases with cash. Lenders are examining your cash on hand when considering your loan.
Don't look for a new career. Lending Institutions like to see a consistent career history on your application forms. Finding a new career (especially one with a better salary) may not jeopardize your ability to qualify for your mortgage. However, if you switch careers before your loan is approved, your process could fail or be bogged down.
Don't switch your accounts to a new bank or move around your cash. Your lender will require you to submit recent bank statements for all of your accounts: savings, checking, money market, and other liquid assets. To detect potential fraud, most lenders need detailed paperwork to document the source of all cash. Changing banks or transferring funds elsewhere - even if its just to consolidate funds - might hinder the review of your accounts.
Don't give cash directly to your seller (generally in cases of "for sale by owner") for a "good faith" deposit. As a rule, your good faith deposit belongs to you, not the seller up until the sale is final. Your seller may not realize that this good faith money should be used for your expenses upon closing. A neutral party, like an attorney can hold your earnest money, or you may put it temporarily into a trust account until you close. If your sale falls through, the contract with the seller should indicate where the good faith deposit should go.
Nationwide Home Loans can walk you through the pitfalls of getting a mortgage. Give us a call at 5626935048.