Don't Trip Yourself up While Buying your Home

What's more fun than getting a bunch of new furnishings to go in your future home? Not much. But buying big ticket items before closing can be a misstep. It's best to remember that until closing, your lender is watching you very closely. We have given you a list of actions below you will want to avoid when waiting for closing.

Don't overspend on big-ticket items You may be itching to turn your new kitchen into a home magazine cover, or celebrate your new castle, but keep away from major purchases like furniture, cars, appliances, or vacations until the loan closes. Using credit cards to buy furniture could compromise your loan process by distorting your numbers. It's also a mistake to make those huge purchases using cash. Lending Institutions are examining your available cash when considering your loan.

Don't look for a new job. Lenders like to see a consistent job history on your application forms. Changing jobs may not jeopardize your ability to qualify for a mortgage loan - particularly if you are going to be making more money. However, switching jobs during your approval process could influence whether or not you are approved.

Don't move cash around or change banks. Bank statements from recent months for accounts in your name (savings, checking, money market, and other accounts) will probably be studied as the lending institution makes decisions regarding your mortgage application. To detect fraud, lenders want to see clear documentation of how you earn your living and where any additional wealth comes from. Changing banks or transferring funds elsewhere - even if its merely to pool funds - may hinder the documentation of your accounts.

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 remains yours until the sale closes. Although your seller might not realize this, the earnest money should be applied to your closing expenses. An attorney or other type of neutral party can hang onto your deposit, or you may put it temporarily into a trust account until closing. The purchase contract should specify to whom the funds go if the transaction does not go through.

Bob Rutledge Mortgage can walk you through the pitfalls of getting a mortgage. Call us: 3149139678.