Don't Trip Yourself up While Buying your Home

What's better than buying a bunch of new furniture to go in your future home? Not much. 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 actions to avoid during this critical time of your home purchase.

Don't empty your wallet on big-ticket items You may be itching to buy that new easy-chair for the soon-to-be-yours den, but it's advisable to avoid making major buys like furniture, appliances, jewelry, or vacations until closing. Your lender may send up red flags if you finance your appliances on your credit cards during your loan process. It's even a bad idea to make those large purchases using cash. Lenders are examining your cash reserve when considering your loan.

Don't go on a job search. Consistency in your job history is a good thing to lenders. Getting a new job before you apply for a loan may not jeopardize your approval at all. However, finding a new job during the loan process could influence whether or not you are approved.

Don't take your accounts to a new bank or move around your finances. Your lending institution will instruct the submission of recent bank statements of all of your accounts: checking, savings, money market, and other assets. To avoid potential fraud, most loans need thorough paperwork to verify the source of all cash. No matter the reason, switching banks or moving funds from one account to another could raise a red flag with your lender and slow down your qualification process.

Don't give funds directly to your seller (generally in cases of "for sale by owner") to be used as earnest money. As a rule, your earnest money belongs to you, not to the seller up until the deal closes. Although some individual sellers may not understand this, the good faith funds must be applied to the buyer's closing expenses. Get an attorney or other neutral person who is able to hang on to the funds or place them in a trust account until closing. If your transaction fails, your purchase agreement should specify to whom your good faith deposit should go.

F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org) can walk you through the pitfalls of getting a mortgage. Call us at 214-300-8756.



English French German Portuguese Spanish