Don't Trip Yourself up While Buying your Home
What's better than getting a bunch of new stuff to go in your future home? Nothing. But buying big ticket items before closing could be trouble. There are still a few major hurdles to jump before the house is realy yours. Below you'll find a list of things to avoid during this critical time of your home purchase.
Don't overspend on big-ticket items Although you may be dreaming of ways to turn your new home into a castle, try to stay away from big ticket purchases like appliances, electronics, or expensive furnishings. You will also want to avoid vacations and vehicle purchases until the closing of your loan. Your credit numbers could change suddenly if you purchase new furniture using plastic. Using cash to buy big items can also be a problem: most banks consider your available cash when approving your mortgage.
Don't look for a new career. Lenders feel comfortable seeing a consistent work history on your application. Getting a new job before you start the application process for a loan may not compromise your approval at all. But for some, switching jobs during the mortgage loan approval process could bring concern and stymie your approval.
Don't switch your accounts to a new bank or move around your cash. Most lenders will require you to submit recent bank statements of all of your accounts: savings, checking, money market, and other liquid assets. To avoid fraud, lenders will need a clear and consistent picture of how you earn your living and where any additional wealth comes from. Changing banks or transferring finances elsewhere - no matter the purpose - could hinder the documentation of your accounts.
Don't hand over earnest money directly to the seller in a FSBO (for sale by owner) purchase. Until the sale is complete, the good faith deposit actually belongs to you. The good faith money is to go toward your expenses upon closing; some sellers may not realize this. A neutral party, like an attorney can hold onto your deposit, or you may put it temporarily into a trust account until closing. The contract should document to whom the money goes if the transaction fails.
First State Bank can walk you through the pitfalls of getting a mortgage. Call us at 4025970500.