Things to Avoid While Purchasing a Home

In the rush of excitement that comes with an accepted offer and a "yes" from the lender, some homebuyers make the error of carrying their enthusiasm straight to the mall or furniture store. Keep in mind that until you get the keys, your lender is watching your accounts very closely. We have given you a list of things below you will want to avoid when waiting for your loan to close.

Don't make expensive purchases. Although you will be listing ways to turn your new house into a showplace, try to stay away from major purchases like appliances, electronics, or furniture. We also recommend that you avoid vacations and car purchases until your loan closes. Financing your bedroom furniture with a store card or a bank credit card could jeopardize your credit worthiness when you need it the most. Because lending institutions are perusing your bank accounts, a large cash purchase is also not advised.

Don't get a new career. Your recent work history should show consistency. Finding a new job (especially one with a bigger paycheck) may not hinder your ability to qualify for a mortgage. However, switching careers in the middle of the application process might influence your approval.

Don't switch banks or move money around in your accounts. As your lender reviews your loan application, you will likely be asked to produce bank statements for recent months on your checking accounts, savings accounts, money market accounts and other liquid assets. In order to eliminate fraud, lenders need a consistent portrayal of how you earn your money and where additional funds come from. Switching banks or moving finances to another account - for whatever purpose - may hinder the documentation of your funds.

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 is actually yours until the transaction is final. Your good faith money is to be used for your expenses closing; your FSBO seller might not understand this. We recommend that you put the funds into a trust account, or get an attorney to hold them until closing. Your contract should dictate where the deposit goes if the transaction fails.

At Victoria Capital Mortgage Company, we answer questions about this process every day. Call us at 4083990103.