Things to Avoid While Buying a New Home

In the rush of excitement that comes with an accepted offer and a "yes" from the lender, some homebuyers make the mistake of taking their enthusiasm straight to the mall or furniture store. There are still a few major hurdles to jump before the keys are handed over. We have given you a list of things below we suggest you avoid when waiting for your loan to close.

Don't buy luxury items. You may be itching to turn your new kitchen into a showplace, or celebrate your new dream home, but stay away from big purchases like furniture, jewelry, appliances, or vacations until closing. Your credit numbers could change suddenly if you purchase new furniture using plastic. Because lenders are reviewing your financial accounts, a large cash purchase is also not advised.

Don't get a new career. Consistency in your job history is a positive thing to banks and other lenders. Getting a new job may not jeopardize your ability to qualify for a mortgage loan - especially if you are going to be making more money. But for some people, changing careers during the loan application process might raise concern and stymie your approval.

Don't change banks or move finances around in your accounts. Your lending institution will require you to submit recent bank statements for all of your accounts: checking, savings, money market, and other assets. The lender is looking for a steady rise and fall of your funds over the month, in the interest of avoiding fraud. No matter the reason, changing banks or transferring funds can raise a red flag with the lender and slow down your loan process.

Don't give money directly to your seller (generally in the case of of "for sale by owner") to be considered a "good faith" deposit. As a rule, your good faith money belongs to you, not the seller up until the deal closes. The earnest money is to go toward your expenses upon closing; some FSBO sellers might not realize this. A neutral party, like an attorney can hold onto your funds, or you may place them temporarily into a trust account until closing. If your sale falls through, your contract with the seller should document where this earnest money should go.

Mortgage Headquarters of Missouri, Inc can answer questions about these "Don'ts" and many others. Give us a call at 5733029990.