Don't Trip Yourself up While Buying your 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 carrying their enthusiasm straight to the mall or furniture store. There still remain a few major hurdles to jump before the house is realy yours. Below you'll find a list of actions to stay away from during this crucial time of your home purchase.

Don't overspend on big-ticket items You may be itching to turn your new living room into a showplace, or celebrate your new dream home, but stay away from major purchases like furniture, jewelry, appliances, or vacations until closing. Using plastic to buy new living room furniture could jeopardize your lending process by changing your numbers dramatically. It's even a bad idea to make those large purchases with cash. Lending Institutions are examining your available cash when considering your loan.

Don't get a new career. Lending Institutions feel comfortable seeing a consistent job history on your application forms. Changing jobs may not affect your ability to qualify for a mortgage loan - especially if you are improving your salary. However, if you switch careers before approval, your loan process could fail or be bogged down.

Don't change banks or move cash around in your bank accounts. Your lending institution will instruct the submission of recent bank statements of accounts in your name: savings, checking, money market, and other assets. To detect fraud, lenders require a clear and consistent picture of how you earn your money and where any additional wealth comes from. Changing banks or transferring money to another account - for whatever reason - might hinder the documentation of your accounts.

Don't give your FSBO (for sale by owner) seller earnest money, delivered to his door. As a rule, your good faith deposit is yours, not the seller's until the sale is final. Your good faith funds are to be applied to your expenses closing; some sellers may not realize this. An attorney or other type of neutral party can hold your funds, or you may place them temporarily into a trust account until you close. If your transaction fails, the purchase agreement should dictate where your good faith funds should go.

Mortgage Headquarters of Missouri, Inc can walk you through the pitfalls of getting a mortgage. Give us a call: 5733029990.