Dont's When Buying a New House
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Many new homebuyers make the mistake of rushing out to buy new things for their home as soon as the seller accepts their offer and the lender approves the loan. There are still a few major hurdles to jump before closing. Here are some things to refrain from before closing to be sure the transaction goes well.
Don't throw your money around. Although you will be listing ways to turn your new house into a castle, avoid major purchases like appliances, electronics, or expensive furnishings. You will also want to avoid vacations and car purchases until the closing of your loan. Your credit numbers could be altered suddenly if you purchase new furniture using plastic. It's even a mistake to make those big purchases with cash. Lending Institutions are examining your cash on hand when considering your loan.
Don't look for a new career Lending Institutions feel comfortable seeing a consistent job history on your application. Getting a new job may not compromise your ability to qualify for a loan - especially if you are getting a better salary. However, if you switch careers before approval, your process could fail or be stalled.
Don't switch banks or move cash around in your bank accounts. Your lending institution will instruct the submission of recent bank statements for accounts in your name: savings, checking, money market, and other liquid assets. Your lending institution looks for a consistent rise and fall of your funds each month, in the interest of avoiding fraud. No matter the reason, switching banks or moving funds from one account to another might raise a red flag with your lender and slow your qualification process.
Don't deliver a "good faith" deposit directly to the seller in a FSBO (for sale by owner) purchase. As a rule, your good faith deposit is yours, not the seller's until the deal closes. Some sellers may not realize that the good faith money should be applied to your expenses upon closing. Get a lawyer or other neutral party who is able to hang on to the funds or place them in a trust account until closing. The final disposition of earnest money, in the case of a failed transaction, should be included in the contract with your seller.
Laser Lending can walk you through the pitfalls of getting a mortgage. Call us at 801.999.0493.