Don't Trip Yourself up While Buying a 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. There still remain a few major hurdles to jump before the keys are handed over. Below you'll find a list of things to stay away from during this critical time of your home purchase.
Don't empty your wallet on big-ticket items You may be itching to turn your new living room into a home magazine cover, or celebrate your new dream home, but stay away from big purchases like furniture, jewelry, appliances, or vacations until the loan closes. Using plastic to buy new living room furniture could jeopardize your lending process by distorting your numbers. Using cash to purchase big items can also create an issue: many lending institutions consider your cash reserve when approving your loan.
Don't get a new job. Lending Institutions feel comfortable seeing a consistent job history on your application. Changing jobs may not jeopardize your ability to qualify for a mortgage loan - especially if you are getting a bigger paycheck. However, getting a new job in the middle of the application process could influence your approval.
Don't switch banks or move money around in your accounts. Most lenders will instruct the submission of recent bank statements on your accounts: checking, savings, money market, and other assets. In order to eliminate fraud, lenders require a clear and consistent picture of how you earn your living and where any additional wealth comes from. Switching banks or transferring finances elsewhere - no matter the reason - could make it harder for the lender to review your funds.
Don't deliver earnest money directly to the seller in a FSBO (for sale by owner) purchase. Your good faith money does not belong to the seller: it remains yours until closing. Although your seller might not know this, any earnest money should go toward your closing expenses. An attorney or other type of neutral party can hang onto your funds, or you may place them temporarily into a trust account until closing. Your contract should specify where the funds go if the transaction does not go through.
Oak Mortgage Company, LLC can walk you through the pitfalls of getting a mortgage. Call us at (856) 988-8100 x6615.