Things to Avoid While Buying a Home
Some new homebuyers make the mistake of rushing out to buy new things for their home as soon as the seller accepts their offer and the loan is approved. Until your keys are in hand, there still remain some hurdles to jump. Here are some actions to refrain from during the home buying process to assure your transaction goes well.
Don't make expensive purchases. You may be tempted to order that new easy-chair for the soon-to-be-yours parlor, but it's advisable to avoid making large purchases like furniture, appliances, jewelry, or vacations until closing. Using plastic to buy furniture could compromise your loan process by distorting your numbers. Using cash to purchase big-ticket items can also create a bad idea: most lenders take into consideration your available cash when approving your application.
Don't look for a new job. Lending Institutions look for a consistent career history on your application. Finding a new career (especially one with a better paycheck) may not jeopardize your ability to qualify for your mortgage loan. However, getting a new career in the middle of the application process may affect your approval.
Don't take your accounts to a new bank or move around your cash. As your lender considers your mortgage loan package, you will likely be required to submit bank statements for the last few months on your checking and savings accounts, money market accounts and other liquid finances. The lending institution looks for a consistent rise and fall of your funds over the pay period, in the interest of avoiding fraud. Changing banks or moving money elsewhere - no matter the purpose - might hinder the review of your funds.
Don't give your FSBO (for sale by owner) seller earnest money, delivered to his door. Until the sale is complete, any good faith deposit remains yours. Any earnest funds are to go toward your expenses upon closing; some individual sellers might not realize this. A neutral party, like an attorney can hang onto your deposit, or you may put it temporarily into a trust account until you close. The final disposition of earnest funds, in the case of a failed transaction, should be specified in the purchase agreement with your seller.
At Saab Mortgage, we answer questions about this process every day. Give us a call at 7032880777.