What to Avoid During your Home Purchase
In the rush of excitement that comes with an accepted offer and a "yes" from the lender, some homebuyers make the mistake of taking their enthusiasm straight to the mall or furniture store. Until your keys are in hand, there are still some hoops to jump through. Below you'll find a list of things to avoid during this critical time of your home purchase.
Don't empty your wallet on big-ticket items Although you will be listing ways to turn your new home into a showplace, try to stay away from major purchases like appliances, electronics, or expensive furnishings. We also recommend that you keep away from vacations and car purchases until your loan closes. Your credit numbers could be altered suddenly if you make a huge purchase using credit cards. It's also a red flag to make those big-ticket purchases using cash. Lenders are looking at your available cash when considering your loan.
Don't go on a job search. Your recent career history should show stability. Finding a new job (particularly one with a bigger paycheck) may not affect your ability to qualify for your loan. However, if you switch careers before your loan is approved, your loan process could fail or be slowed down.
Don't switch your accounts to a new bank or move around your money. Your lending institution will ask for recent bank statements on all of your accounts: savings, checking, money market, and other liquid assets. The lending institution looks for a steady flow of your money over the month, in order to avoid fraud. No matter the purpose, changing banks or transferring money could raise a red flag with your lender and slow down your loan process.
Don't give your FSBO (for sale by owner) seller earnest money, delivered to his door. As a rule, your good faith deposit belongs to you, not to the seller up until closing. A FSBO seller may not know that your earnest money must be used for your expenses upon closing. Find a lawyer or other neutral party who will hang on to the deposit or place it in a trust account until you close. Your purchase contract should dictate who keeps the deposit if the transaction falls through.
Amity Mortgage LLC can walk you through the pitfalls of getting a mortgage. Give us a call: (203) 729-6681.