Don't Trip Yourself up While Buying a New Home

In the rush of excitement that comes with an accepted offer and a "yes" from the lender, many homebuyers make the mistake of taking their enthusiasm straight to the mall or appliance store. There still remain a few major hurdles to jump before closing. Below you'll find a list of actions to stay away from during this critical time of your home purchase.

Don't buy luxury items. You may be itching to turn your new living room into a home magazine cover, or celebrate your new castle, but stay away from expensive purchases like furniture, cars, appliances, or vacations until closing. Your credit numbers could change suddenly if you make a huge purchase using credit cards. Since lending institutions are looking closely at your bank accounts, a large cash purchase is also not advised.

Don't look for a new career. Consistency in your work history is a good thing to banks and other lenders. Changing jobs may not compromise your ability to qualify for a mortgage loan - particularly if you are going to be making more money. But for some, changing jobs during the mortgage loan approval process might raise concern and stymie your approval.

Don't switch banks or move finances around in your accounts. Bank statements from recent months for accounts in your name (savings, checking, money market, and others) will probably be studied as the lending institution makes decisions regarding your approval. To avoid potential fraud, most lending institutions want a thorough paper trail to determine the source of all funds. Switching banks or moving finances elsewhere - no matter the reason - may hinder the review of your accounts.

Don't give money directly to your seller (generally in the case of of "for sale by owner") for earnest money. Until closing, the good faith deposit remains yours. Any earnest money is to be used for your expenses closing; some FSBO sellers might not realize this. We recommend that you put the deposit into a trust account, or get an attorney to hold it until the closing of the sale. The disposition of good faith funds, if your home purchase fails, should be specified in the contract with your seller.

Mortgage Headquarters of Missouri, Inc can walk you through the pitfalls of getting a mortgage. Call us at 5733029990.