Don't Trip Yourself up While Buying a New Home
With the thrill that comes with an accepted offer and a "yes" from the lender, many homebuyers make the mistake of taking their enthusiasm straight to the mall or furniture store. Until closing, there still remain some hurdles to jump. Here are some things to refrain from before closing to assure the transaction goes smoothly.
Don't overspend on big-ticket items Although you will be dreaming of ways to turn your new house into a showplace, try to stay away from big ticket purchases like appliances, electronics, or expensive furnishings. We also recommend that you keep away from vacations and vehicle purchases until the closing of your loan. Using plastic to buy new living room furniture could compromise your lending process by changing your numbers dramatically. Because lenders are reviewing your bank accounts, a large cash purchase is also a mistake.
Don't look for a new career. Lenders feel comfortable seeing a consistent job history on your application forms. Finding a new job (particularly one with a better paycheck) may not jeopardize your ability to qualify for a mortgage loan. But in some cases, changing jobs during the mortgage application process might bring concern and stymie your application.
Don't move money around or change banks. Bank statements from the last few months for all of your accounts (savings, checking, money market, and other assets) will likely be reviewed as the lending institution makes decisions regarding your loan application. Your lender wants to see a consistent flow of your money each month, in the interest of avoiding fraud. No matter the reason, moving banks or moving funds from one account to another can raise a red flag with the lender and slow down your qualification process.
Don't give your FSBO (for sale by owner) seller earnest money, delivered to his door. Your good faith deposit does not belong to the seller: it remains yours until the sale closes. Some FSBO sellers may not know that any good faith money should go toward your expenses at closing. We recommend that you put the money into a trust account, or get an attorney to hold it until closing. Should your home purchase fail, your contract with the seller should document to whom this earnest money should go.
Abbey Mortgage can answer questions about these "Don'ts" and many others. Call us at 352-369-4200.