Don't Trip Yourself up While Buying your New Home

Some new homebuyers make the mistake of rushing out to buy new things for their home soon after the seller says "yes" and the lender approves the loan. Until your loan closes, there are still some hurdles to jump. We have given you a list of things below we suggest you stay away from when waiting for your loan to close.

Don't empty your wallet on big-ticket items You may be itching to buy that new couch for the soon-to-be-yours den, but it's advisable to stay away from making major buys like furniture, appliances, electronic equipment, or cars until closing. You may send up red flags with your lender if you finance new electronics on your credit cards in the middle of your loan process. Because lenders are looking closely at your bank accounts, a large cash purchase is also not advised.

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

Don't switch your accounts to a new bank or move around your finances. Bank statements from the last two or three months for accounts in your name (savings, checking, money market, and other accounts) will be reviewed as the lending institution makes decisions regarding your application. To detect potential fraud, most loans want thorough paperwork to determine the source of all funds. No matter the purpose, switching banks or moving money from one account to another may raise a red flag with your lender and impede your approval process.

Don't give your FSBO (for sale by owner) seller earnest money, delivered to his door. Your earnest money does not belong to the seller: it remains yours until the sale closes. The earnest funds are to be applied to your expenses upon closing; the FSBO seller might not know this. We recommend that you put the deposit into a trust account, or get an attorney to hold it until closing. Your purchase contract should document where the funds go if the transaction fails.

F&T Mortgage, Inc. NMLS # 168839 ( can answer questions about these "Don'ts" and many others. Call us at 214-300-8756.

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