Don't Trip Yourself up While Buying your 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 furniture store. There are still a few major hurdles to jump before your loan closes. Here are some actions to avoid before closing to be sure the transaction goes smoothly.

Don't buy luxury items. You may be itching to turn your new living room into a home magazine cover, or celebrate your new castle, but keep away from major purchases like furniture, cars, appliances, or vacations until your loan closes. Financing new bedroom furniture with a store card or a bank credit card could jeopardize your credit worthiness when you need it the most. Since lenders are examining your financial accounts, a large cash purchase is also a bad idea.

Don't look for a new career. Your recent job history should show stability. Changing jobs may not compromise your ability to qualify for a mortgage loan - particularly if you are getting a bigger paycheck. However, if you switch careers before approval, your process could fail or be slowed down.

Don't move money around or change banks. Bank statements from recent months for accounts in your name (savings, checking, money market, and other assets) will likely be reviewed as the lender makes decisions regarding your mortgage application. Your lender is looking for a steady rise and fall of your money over the pay period, in order to avoid fraud. Even for innocent reasons, moving around money or switching banks could make it difficult for the lending institution to confirm your bank history.

Don't give your FSBO (for sale by owner) seller earnest money, delivered to his door. Your good faith money does not belong to the seller: it is actually yours until the sale closes. Any earnest money is to go toward your expenses closing; some FSBO sellers may not understand this. We recommend that you put the deposit into a trust account, or get a neutral party, like a lawyer, to hold it until the deal closes. Your contract should specify who keeps the deposit if the transaction fails.

Executive Lending Group can walk you through the pitfalls of getting a mortgage. Give us a call: 4056158543.