Don't Trip Yourself up While Buying a Home
In the rush of excitement that comes with an accepted offer and a "yes" from the lender, many homebuyers make the mistake of carrying their enthusiasm straight to the mall or appliance store. There are still 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 buy luxury items. You may be tempted to order that new easy-chair for the soon-to-be-yours den, but it's advisable to avoid making big ticket purchases like furniture, appliances, electronic equipment, or cars until closing. You may send up red flags with your lender if you buy your furniture on your credit cards in the middle of your loan process. It's also a bad idea to make those big-ticket purchases using cash. Lenders are examining your cash reserve when considering your loan.
Don't get a new career. Lending Institutions look for a consistent career history on your application forms. Getting a new job may not affect your ability to qualify for a mortgage loan - particularly if you are getting a better salary. However, if you switch careers before you qualify, your process could fail or be stalled.
Don't switch your accounts to a new bank or move around your cash. Most lenders will ask for recent bank statements for accounts in your name: savings, checking, money market, and other liquid assets. In order to avoid fraud, lenders want to see a consistent portrayal of how you earn your living and where any additional wealth comes from. Switching banks or transferring money elsewhere - even if its only to pool funds - could hinder the documentation of your funds.
Don't give funds directly to your seller (usually in cases of "for sale by owner") for earnest money. Until the completion of the deal, the good faith deposit actually belongs to you. Your earnest funds are to go toward your expenses upon closing; some sellers may not realize this. A neutral party, like an attorney can hold your earnest money, or you may put it temporarily into a trust account until you close. Your purchase contract should dictate who keeps the deposit if the home purchase falls through.
Acceptance Capital Mortgage Corporation can walk you through the pitfalls of getting a mortgage. Give us a call: (337) 453-0012.