Don't Trip Yourself up While Buying your Home

What's more fun than buying a bunch of new stuff to adorn your future home? Not much. But making large purchases before your loan closes could be trouble. It's wise to remember that until closing, your lender is watching you very closely. We have given you a list of actions below we suggest you stay away from when waiting for your loan to close.

Don't throw your money around. You may be itching to turn your new kitchen into a home magazine cover, or celebrate your new castle, but stay away from big purchases like furniture, jewelry, appliances, or vacations until the loan closes. Your credit numbers could be altered suddenly if you make a huge purchase using credit cards. Using cash to buy big items can also create a bad idea: many lenders consider your available cash when approving your application.

Don't look for a new career. Lenders feel comfortable seeing a consistent work history on your application. Finding a new job (particularly one with a better salary) may not hinder your ability to qualify for your loan. But in some cases, changing jobs during the loan approval process may bring concern and affect your approval.

Don't switch your accounts to a new bank or move around your cash. Bank statements from the last two or three months for accounts in your name (checking, savings, money market, and other accounts) will be studied as the lender considers your loan application. To detect fraud, lenders require a clear and consistent picture of how you earn your living and where additional wealth comes from. No matter the reason, moving banks or moving funds from one account to another might raise a red flag with your lender and impede your loan process.

Don't give your FSBO (for sale by owner) seller a "good faith" deposit, delivered to his door. Until the sale is complete, the earnest money actually belongs to you. A FSBO seller may not know that any good faith money should go toward your expenses at closing. We recommend that you put the deposit into a trust account, or get a neutral party, like an attorney, to hold it until the closing of the sale. The final disposition of good faith money, if your home purchase fails, should be specified in the purchase agreement with the seller.

Abbey Mortgage can walk you through the pitfalls of getting a mortgage. Give us a call: 3523694200.

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Abbey Mortgage

Company NMLS#: 374095

2107 SE 3rd Ave.
Ocala, FL 34471