Don't Trip Yourself up While Buying a Home

With the thrill 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. Keep in mind that until your keys are in hand, your lender is watching you very closely. Here are some actions to avoid during the home buying process to be sure your transaction goes smoothly.

Don't make expensive purchases. You may be itching to turn your new kitchen into a home magazine cover, or celebrate your new dream home, but stay away from big purchases like furniture, jewelry, appliances, or vacations until your loan closes. Your credit numbers could change suddenly if you purchase new furniture using credit cards. Because lenders are examining 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 paperwork. Getting a new career before you apply for a mortgage may not compromise your approval at all. But for some people, changing jobs during the mortgage loan approval process could raise concern and stymie your approval.

Don't switch banks or move finances around in your accounts. Your lender will ask for recent bank statements on accounts in your name: savings, checking, money market, and other assets. The lender wants to see a steady flow of your funds over the pay period, in order to avoid fraud. Even for innocent purposes, transferring cash or changing banks could make it more difficult for the lending institution to verify your bank history.

Don't give your FSBO (for sale by owner) seller a "good faith" deposit, delivered to his door. As a rule, your good faith deposit is yours, not the seller's until the deal closes. Your seller might not know that any good faith funds should be applied to your expenses at closing. An attorney or other type of neutral party can hang onto your earnest money, or you may put it temporarily into a trust account until you close. The purchase agreement should indicate where the money goes if the home purchase falls through.

U.S.A. Lending, Inc. can walk you through the pitfalls of getting a mortgage. Call us at 305-967-7200.