Things to Avoid While Purchasing a Home

What's more fun than getting a bunch of new stuff to go in your future home? Nothing. But buying big ticket items before your loan closes can be an error. It's best to remember that until closing, your lender is watching you very closely. Below you'll find a list of things to stay away from during this critical time of your home purchase.

Don't buy luxury items. You may be itching to order that new easy-chair for the soon-to-be-yours den, but it's best to stay away from making large buys like furniture, appliances, electronic equipment, or vacations until closing. Your credit numbers could change suddenly if you make a huge purchase using plastic. Using cash to buy expensive items can also create a problem: most banks take into consideration your cash on hand when approving your application.

Don't look for a new career. Your recent career history should show stability. Changing jobs may not affect your ability to qualify for a mortgage loan - particularly if you are going to be making more money. However, if you switch careers before your loan is approved, your mortgage process could fail or be stalled.

Don't move finances around or change banks. Bank statements from recent months for accounts in your name (checking, savings, money market, and others) will likely be reviewed as the lending institution considers your application. Your lender is looking for a steady rise and fall of your funds each month, in the interest of ruling out fraud. Even for innocent purposes, transferring finances or changing banks may make it more difficult for your lender to verify your bank history.

Don't give your FSBO (for sale by owner) seller earnest money, delivered to his door. As a rule, your earnest money belongs to you, not to the seller until the deal closes. Your earnest money is to be applied to your expenses upon closing; the FSBO seller might not know this. Get a lawyer or other neutral person who will hold the funds or place them in a trust account until you close. The final disposition of good faith money, if your sale falls through, should be documented in the purchase agreement with the seller.

Triumph Mortgage Inc can walk you through the pitfalls of getting a mortgage. Call us: 8327302000.