Things to Avoid While Buying a Home
In the rush of excitement that comes with an accepted offer and a "yes" from the lender, many homebuyers make the mistake of taking their enthusiasm straight to the mall or appliance store. Keep in mind that until closing, your lender is watching you very closely. Here are some things to stay clear of during the home buying process to be sure the transaction goes well.
Don't empty your wallet on big-ticket items You may be itching to turn your new kitchen into a home magazine cover, or celebrate your new castle, but stay away from big purchases like furniture, jewelry, appliances, or vacations until closing. Financing your furniture with a store card or a bank credit card could put your credit worthiness at risk when you need it the most. Since lending institutions are examining your bank accounts, a large cash purchase is also a mistake.
Don't look for a new job. Stability in your work history is a good thing to lenders. Finding a new career (especially one with a better paycheck) may not hinder your ability to qualify for a mortgage. However, if you switch careers before you qualify, your process could fail or be slowed down.
Don't move finances around or switch banks. Most lenders will ask for recent bank statements for accounts in your name: checking, savings, money market, and other liquid assets. To detect potential fraud, most lending institutions need a thorough paper trail to determine the source of all funds. Changing banks or moving funds to another account - even if its only to pool funds - could make it difficult for your lender to review your funds.
Don't hand over a "good faith" deposit directly to the seller in a FSBO (for sale by owner) purchase. Until the completion of the deal, any earnest money remains yours. Although your FSBO seller might not understand this, any good faith money should go toward the buyer's closing expenses. Find a lawyer or other neutral party who can hang on to the deposit or place it in a trust account until closing. If your sale falls through, the purchase agreement should indicate where the earnest money should go.
At My FL Home Loans, Inc., we answer questions about this process every day. Call us at (727) 743-1620.