Things to avoid before buying a home

Many homebuyers and first time home buyers make the mistake of rushing out to buy things to fill their home with as soon as the seller accepts their purchase offer and the lender pre-approves their loan. But there are still a few major hurdles to overcome before the keys are handed out. Here are some things to avoid during the home buying process to assure your transaction goes as smoothly as possible:

• Don't make an expensive purchase. It may be tempting to order that new sofa for your soon-to-be living room, but its best to avoid making major purchases like furniture, cars, appliances, electronic equipment, jewelry, or vacations until after the closing. Financing that furniture with a store credit card or even one of your own credit cards could jeopardize your credit worthiness during the time it means the most. Using cash to purchase big items can also create a problem because many banks take into consideration your cash reserve when approving your mortgage.
• Don't get a new job. If at all possible try to avoid a new job, but if it because absolutely necessary discuss the situation with your loan officer. Lenders like to see a consistent job history. Generally, changing jobs will not affect your ability to qualify for a mortgage loan - especially if you are going to be making more money. But for some people, getting a new job during the loan approval process could raise some concern and affect your application. Again, consult with your loan officer prior to any job change, make a plan and in most cases everything will work out.
• Don't switch banks or move money around. As your lender reviews your loan package, you will likely be asked to provide bank statements for the last two or three months on your checking accounts, savings accounts, money market funds and other liquid assets. To eliminate potential fraud, most loans require a thorough paper trail to document the source of all funds. Changing banks or transferring money to another account - even if its just to consolidate funds - could make it difficult for the lender to document your funds.
• Don't give a good faith deposit directly to the seller in a FSBO purchase. As a rule, your good faith deposit belongs to you, not to the seller, until the deal closes. Your FSBO seller may not know that your good faith funds should be applied to your expenses at closing. Get an attorney or other neutral party who can hold the deposit or put it in a trust account until you close on the home. Your purchase contract should dictate to whom the funds go should the transaction fall through.
• Don't disregard your lenders requirements. You may have been pre-approved for the loan but your work with the lender is far from over. In order to process your loan, you need to meet certain requirements. Your lender will need copies of your bank statements, W2s and other paperwork. It is up to you to get it to him or her as soon as possible. Failure to submit certain qualifying documents could cause you to lose your loan and the financing you need to buy your home.
• Dont Apply for New Credit. When you apply for new credit your credit scores can and usually go lower because of the new credit account plus the required inquiries. Also, your lender will have to take into account the new credit and apply the new monthly payment to your debt to income ratio. Lower scores more credit can hurt your chances to reach the closing table.
• Don't Hide From Your Loan Officer. It is your loan officers job to help you earn your mortgage to secure the financing for your new home. Stay in contact with your loan officer and discuss any life changes with your mortgage professional as you are going through the mortgage process from start to finish. Lenders work hard to insure they know everything about you during the process, don't hide anything.

If you are looking to purchase a new home in the St. Louis or St. Charles area or anywhere in Missouri I would welcome the opportunity to speak with you and provide you with a no cost no obligation mortgage pre-qualification. FHA, Conventional, FHA 203k, USDA or Rural Development mortgages, and VA mortgage I can help you get your next new home.