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 excitement straight to the mall or appliance store. There still remain a few major hurdles to jump before the house is really yours. Below you’ll find a list of things to stay away from during this crucial time of your home purchase.
Don’t empty your wallet on big-ticket items It may be tempting to order that new sofa for the soon-to-be-yours family room, but it’s best to avoid making big ticket buys like furniture, appliances, jewelry, or cars until closing. Using plastic to buy new living room furniture could jeopardize your loan process by distorting your numbers. Because lenders are looking closely at your financial accounts, a large cash purchase is also a bad idea.
Don’t go job hunting. Lending Institutions look for a consistent work history on your paperwork. Getting a new job may not affect your ability to qualify for a mortgage loan – especially if you are getting a better salary. However, switching careers during the loan process may influence your approval.
Don’t take your accounts to a new bank or move around your money. Bank statements from the last few months for accounts in your name (checking, savings, money market, and other assets) will likely be analyzed as the lender considers your loan application. To eliminate fraud, lenders require a consistent portrayal of how you earn your living and where additional funds come from. Even for practical purposes, moving around finances or switching banks may make it more difficult for your lender to verify your account history.
Don’t give a “good faith” deposit directly to the seller in a FSBO (for sale by owner) purchase. Until the sale is complete, the good faith deposit remains yours. Although your FSBO seller might not realize this, your good faith funds must be used for the buyer’s closing expenses. Get an attorney or other neutral party who is able to hold the funds or place them in a trust account until you close. If your sale falls through, the contract with the seller should dictate where this earnest money should go.
Bluestar Mortgage Inc. can answer questions about these “Don’ts” and many others.
Call us at 847-230-4030 or email us at firstname.lastname@example.org.