What to Avoid During a Home Purchase
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Many new homebuyers make the mistake of rushing out to buy things to fill their home soon after the seller accepts their offer and the loan is approved. Keep in mind that until your keys are in hand, your lender is watching you very closely. We have listed some things below we suggest you stay away from when waiting for your loan to close.
Don't buy luxury items. You may be itching to order that new sofa for the soon-to-be-yours parlor, but it's best to stay away from making large buys like furniture, appliances, jewelry, or cars until your home loan closes. Your credit numbers could change suddenly if you purchase new furniture using credit cards. Because lenders are examining your bank accounts, a large cash purchase is also not advised.
Don't look for a new career. Lenders look for a consistent career history on your application. Changing jobs may not compromise your ability to qualify for a mortgage loan - especially if you are going to be making more money. However, switching jobs in the middle of your loan process could influence whether or not you are approved.
Don't switch your accounts to a new bank or move around your money. Most lenders will instruct the submission of recent bank statements of your accounts: savings, checking, money market, and other liquid assets. Your lender looks for a consistent rise and fall of your money each pay period, in order to avoid fraud. Changing banks or moving funds elsewhere - even if its only to pool funds - may make it harder for the lender to document your funds.
Don't hand over a "good faith" deposit directly to the seller in a FSBO (for sale by owner) purchase. As a rule, your good faith deposit belongs to you, not to the seller up until the deal closes. Your earnest funds are to be applied to your expenses upon closing; your individual seller may not realize this. Find a lawyer or other neutral person who is able to hold the money or put it in a trust account until you close. The final disposition of earnest funds, if your transaction falls through, should be documented in the contract with your seller.
Acceptance Capital Mortgage Corporation - Roxy Redenbaugh NMLS#269926, ACMC NMLS#2225 can walk you through the pitfalls of getting a mortgage. Give us a call at 808.457.2455.