Don't Trip Yourself up While Buying your Home
In the rush of excitement that comes with an accepted offer and a "yes" from the lender, many homebuyers make the error of taking their enthusiasm straight to the mall or appliance store. It's best to remember that until you get the keys, your lender is watching your accounts very closely. We have listed some things below you will want to avoid when waiting for closing.
Don't throw your money around. 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 the loan closes. Your credit numbers could be altered suddenly if you make a huge purchase using credit cards. It's also a red flag to make those huge purchases with cash. Lenders are examining your cash on hand when considering your loan.
Don't get a new career. Your recent career history should show stability. Getting a new career before you start the application process for a mortgage may not compromise your approval at all. But for some people, changing jobs during the loan approval process might raise concern and stymie your application.
Don't switch your accounts to a new bank or move around your money. As the lending institution reviews your mortgage application, you will likely be instructed to produce bank statements for the last two or three months for your saving and checking accounts, money market funds and other liquid finances. To detect fraud, lenders want to see a clear and consistent picture of how you earn your living and where additional funds come from. Even for innocent purposes, transferring funds or switching banks could make it difficult for your lender to confirm your bank history.
Don't deliver a "good faith" deposit directly to the seller in a FSBO (for sale by owner) purchase. Your good faith deposit does not belong to the seller: it remains yours until closing. Although some FSBO sellers might not know this, any good faith funds must go toward the buyer's closing expenses. A neutral party, like an attorney can hold your deposit, or you may put it temporarily into a trust account until closing. The purchase contract should specify who keeps the deposit if the transaction does not go through.
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.