Don't Trip Yourself up While Buying your Home
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What's better than getting a bunch of new furniture to go in your future home? Nothing. But buying big ticket items before your loan closes can be an error. Until your loan closes, there still remain some hoops to jump through like a credit refresh at the end of the process.
Below you'll find a list of actions to avoid during this crucial time of your home purchase.
Don't throw your money around. You may be itching to turn your new kitchen into a home magazine cover, or celebrate your new castle, but I like to advise my clients to keep a cushion fund for a rainy day.
Financing new bedroom furniture with a store card or a bank credit card could put your credit worthiness at risk during the process as well.
Don't look for a new career. Your recent job history should show consistency. Finding a new career (especially one with a bump in salary) may not hinder your ability to qualify for your mortgage loan. However, if you switch careers before you qualify, you may have to wait for the first pay stub from the new job. Self employed borrowers will run into larger hurdles without good advice.
Don't move cash around or change banks. While your lending institution reviews your mortgage application, you will likely be required to submit bank statements for the last two months for your checking accounts, savings accounts, money market funds and other liquid finances. We have to source all large deposits and transfers of money.
Don't give your FSBO (for sale by owner) seller a "good faith" deposit, cash in hand. As a rule, your good faith money is yours, not the seller's up until the deal closes. Any good faith money is to be used for your expenses closing; some sellers may not understand this. We recommend that you put the funds into a trust account, or get an attorney to hold them until the closing of the sale. If your transaction fails, the contract with the seller should dictate to whom this earnest money should go.
Don't go it alone. The buyers commission is paid out of the seller side. You will need a good realtor to help you navigate through an ever changing marketplace. Most on line web sites like zillow and Trulia offer obsolete information. A Realtor with MLS will provide the most recent, accurate market data. Ask me about this! 561-329-0075.
At Preston Ware, we answer questions about this process every day. Give me a call at (561) 329-0075. You will be glad you did.