Don't Trip Yourself up While Buying a Home
What's better than getting a bunch of new stuff to go in your future home? Nothing. But buying big ticket items before your loan closes can be harmful. There are still a few major hurdles to jump before the keys are handed over. Here are some things to refrain from during the home buying process to assure the transaction goes smoothly.
Don't empty your wallet on big-ticket items Although you may be listing ways to turn your new house into a castle, try to stay away from major purchases like appliances, electronics, or expensive furnishings. We also recommend that you stay away from vacations and car purchases until your loan closes. Using plastic to buy furniture could compromise your loan process by changing your numbers dramatically. Because lenders are perusing your financial accounts, a large cash purchase is also a bad idea.
Don't go on a career search. Lenders like to see a consistent work history on your application forms. Getting a new job may not affect your ability to qualify for a mortgage loan - particularly if you are improving your salary. However, switching jobs in the middle of the loan process might influence your approval.
Don't switch your accounts to a new bank or move around your money. Bank statements from the last few months for accounts in your name (savings, checking, money market, and other assets) will probably be studied as the lending institution considers your mortgage application. In order to detect fraud, lenders require clear documentation of how you earn your money and where additional money comes from. No matter the reason, switching banks or moving funds from one account to another might raise a red flag with your lender and slow down your loan process.
Don't give your FSBO (for sale by owner) seller earnest money, delivered to his door. Your good faith money does not belong to the seller: it is actually yours until the sale closes. Any good faith funds are to go toward your expenses closing; some sellers might not realize this. A neutral party, like an attorney can hold your funds, or you may place them temporarily into a trust account until closing. The contract should specify to whom the funds go if the home purchase falls through.
Integris Loans can walk you through the pitfalls of getting a mortgage. Call us: 8014134570.