Things to Avoid While Purchasing a Home
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Many new homebuyers make the mistake of rushing out to buy things to fill their home soon after the seller says "yes" and the loan is approved. It's best to remember that until your keys are in hand, your lender is watching you very closely. Below you'll find a list of things to stay away from during this crucial time of your home purchase.
Don't throw your money around. Although you may be listing ways to turn your new home into a showplace, avoid big ticket purchases like appliances, electronics, or expensive furnishings. We also recommend that you keep away from vacations and vehicle purchases until the closing of your loan. You may send up red flags with your lender if you finance new electronics on your credit cards during your loan process. Because lenders are perusing your financial accounts, a large cash purchase is also a mistake.
Don't look for a new career. Consistency in your job history is a positive thing to lenders. Changing jobs may not affect your ability to qualify for a loan - especially if you are getting a better salary. But for some people, changing jobs during the mortgage loan application process may raise concern and stymie your application.
Don't move cash around or switch banks. Bank statements from the last two or three months for your accounts (checking, savings, money market, and others) will probably be reviewed as the lending institution makes decisions regarding your loan application. In order to detect fraud, lenders want to see a consistent portrayal of how you earn your living and where any additional funds come from. Even for innocent reasons, transferring money or changing banks might make it more difficult for your lending institution to document your account history.
Don't give your FSBO (for sale by owner) seller a "good faith" deposit, cash in hand. As a rule, your good faith deposit belongs to you, not to the seller up until closing. Your seller might not realize that this earnest money is to go toward your expenses at closing. We recommend that you put the funds into a trust account, or get an attorney to hold them until closing. The purchase contract should specify who gets the earnest funds if the transaction fails.
At Bliss Mortgage LLC, we answer questions about this process every day. Call us at 813-966-1888.
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