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, some homebuyers make the mistake of carrying their enthusiasm straight to the mall or furniture store. There still remain a few major hurdles to jump before the keys are handed over. We have listed some actions below you will want to avoid when waiting for closing.

Don't buy luxury items. You may be itching to turn your new kitchen into a home magazine cover, or celebrate your new dream home, but stay away from major purchases like furniture, jewelry, appliances, or vacations until closing. Your credit numbers could be altered suddenly if you make a huge purchase using credit cards. It's even a mistake to make those huge purchases with cash. Lenders are looking at your available cash when considering your loan.

Don't look for a new career. Consistency in your career history is a good thing to banks and other lenders. Finding a new career (particularly one with a better paycheck) may not affect your ability to qualify for your mortgage loan. But for some, changing jobs during the loan application process could raise concern and affect your application.

Don't switch your accounts to a new bank or move around your cash. Bank statements from recent months for accounts in your name (checking, savings, money market, and other accounts) will probably be reviewed as the lending institution considers your loan application. The lender looks for a steady rise and fall of your funds each month, in the interest of ruling out fraud. No matter the reason, moving banks or moving funds from one account to another may raise a red flag with your lender and slow your loan process.

Don't give your FSBO (for sale by owner) seller earnest money, cash in hand. Your good faith deposit does not belong to the seller: it is actually yours until the transaction is final. Although some FSBO sellers might not realize this, the good faith money must be used for your closing expenses. Get a lawyer or other neutral person who will hold the money or place it in a trust account until you close. Should your sale fall through, your purchase agreement should dictate where your earnest money should go.

Halpern & Associates Mortgage Corporation can answer questions about these "Don'ts" and many others. Call us at (305) 535-2230.

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