Things to Avoid While Purchasing a Home
Some new homebuyers make the mistake of rushing out to buy things to fill their home as soon as the seller accepts their offer and the loan is approved. There still remain a few major hurdles to jump before the keys are handed over. Below you'll find a list of actions to avoid during this crucial time of your home purchase.
Don't empty your wallet on big-ticket items Although you may be listing ways to turn your new home into a showplace, avoid major purchases like appliances, electronics, or expensive furnishings. We also recommend that you stay away from vacations and car purchases until the closing of your loan. Your credit numbers could be altered suddenly if you make a huge purchase using plastic. Because lending institutions are reviewing your bank accounts, a large cash purchase is also a bad idea.
Don't go on a job search. Lending Institutions like to see a consistent work history on your application forms. Getting a new career before you apply for a mortgage may not get in the way of your approval at all. But for some people, changing careers during the loan application process might bring concern and hinder your application.
Don't move money around or change banks. While your lender reviews your loan package, you will likely be required to produce bank statements for recent months for your saving and checking accounts, money market funds and other liquid assets. Your lending institution is looking for a steady flow of your funds over the pay period, in the interest of avoiding fraud. No matter the reason, switching banks or moving funds from one account to another can raise a red flag with your lender and impede your loan process.
Don't give your FSBO (for sale by owner) seller a "good faith" deposit, made out directly to him. Until the sale is complete, any good faith deposit remains yours. Although your seller may not realize this, any good faith funds must be applied to your closing expenses. Get an attorney or other neutral party who is able to hang on to the funds or put them in a trust account until you close. The final disposition of good faith funds, in the case of a failed transaction, should be indicated in the contract with the seller.
Americn Hero Mortgage can walk you through the pitfalls of getting a mortgage. Give us a call at 754-202-4376.