Don't Trip Yourself Up While Buying your Home
To ensure your transaction moves smoothly from start to finish we've provided a few pointers that might help.
Don't Buy Big-Ticket ItemsYou may be itching to buy that new couch for the soon-to-be-yours living room, but it's best to stay away from making large purchases like furniture, appliances, jewelry, or vacations until your home loan closes. Financing new bedroom furniture with a store card or a bank credit card could put your credit worthiness at risk during the time it means the most. Using cash to purchase expensive items can even be an issue as we might have to take into consideration your cash reserve when approving your application.
Don't Get a New JobConsistency in your work history is a positive factor when seeking a loan and finding a new job, even one with a better paycheck, may not change your ability to qualify for your mortgage. If you switch careers before your loan is approved, there is a chance the lending process could be stalled, or even worse, cancelled.
Don't Change Banks or Move Cash Around in Your AccountsWe will instruct the submission of recent bank statements of accounts in your name: savings, checking, money market, and other liquid assets. Even for practical reasons, moving around money or changing banks could make it difficult for us to verify your bank history.
Don't Give the FSBO (For Sale by Owner) Seller Earnest Money DirectlyAs a rule, your good faith deposit belongs to you, not to the seller until the sale is final. The good faith funds are to be used for your expenses upon closing; a individual seller might not realize this. Find a lawyer or other neutral person who can hold the deposit or place it in a trust account until closing. The disposition of earnest money, if your transaction fails, should be documented in the purchase agreement with your seller.
We welcome your questions and are more than happy to walk you through them. Give us a call at 509-755-5626.