Things to Avoid While Buying a Home
In the rush of excitement that comes with an accepted offer and a "yes" from the lender, many homebuyers make the error of carrying their enthusiasm straight to the mall or furniture store. Keep in mind that until you get the keys, your lender is watching you very closely. We have given you a list of things below you will want to avoid when waiting for closing.
Don't empty your wallet on big-ticket items You may be itching to turn your new living room into a showplace, or celebrate your new castle, but keep away from big purchases like furniture, cars, appliances, or vacations until closing. Using credit cards to buy new living room furniture could compromise your loan process by altering your numbers dramatically. Since lenders are examining your financial accounts, a large cash purchase is also not advised.
Don't get a new career. Your recent career history should show stability. Finding a new job (particularly one with a bigger salary) may not jeopardize your ability to qualify for your loan. However, if you switch careers before you qualify, your process could fail or be stalled.
Don't move money around or switch banks. Most lenders will require you to provide recent bank statements of accounts in your name: checking, savings, money market, and other assets. In order to avoid fraud, lenders need clear documentation of how you earn your living and where any additional money comes from. Even for innocent purposes, moving around finances or switching banks could make it harder for your lender to verify your bank history.
Don't give your FSBO (for sale by owner) seller earnest money, made out directly to him. Your good faith deposit does not belong to the seller: it is actually yours until the sale closes. Although some FSBO sellers may not know this, any earnest money should be applied to your closing expenses. You'll want to put the deposit into a trust account, or get an attorney to hold it until the deal closes. Your contract should indicate to whom the deposit goes if the transaction falls through.
Asset Alliance Mortgage can walk you through the pitfalls of getting a mortgage. Give us a call: (760) 632-7701.