Don't Trip Yourself up While Buying a Home

What's more fun than buying a bunch of new stuff to adorn your future home? Nothing. But buying big ticket items before closing can be harmful. There still remain a few major hurdles to jump before the keys are handed over. Below you'll find a list of actions to stay away from during this critical time of your home purchase.

Don't make expensive purchases. You may be tempted to buy that new easy-chair for the soon-to-be-yours living room, but it's best to stay away from making large buys like furniture, appliances, jewelry, or vacations until closing. Your credit numbers could change suddenly if you purchase new furniture using plastic. It's even a mistake to make those huge purchases with cash. Lending Institutions are examining your cash on hand when considering your loan.

Don't get a new career. Stability in your job history is a good thing to banks and other lenders. Finding a new job (especially one with a bump in salary) may not affect your ability to qualify for your mortgage. But for some, changing jobs during the mortgage approval process could bring concern and stymie your application.

Don't change banks or move cash around in your accounts. Most lenders will require you to provide recent bank statements on your accounts: checking, savings, money market, and other assets. To avoid fraud, lenders need clear documentation of how you earn your living and where additional money comes from. No matter the purpose, switching banks or moving funds from one account to another could raise a red flag with your lender and slow down your application process.

Don't give your FSBO (for sale by owner) seller earnest money, made out directly to him. Until the sale is complete, the good faith money actually belongs to you. Although some individual sellers might not know this, your earnest money must be used for your closing expenses. It's advisable to put the funds into a trust account, or get an attorney to hold them until the closing of the sale. If your home purchase fails, the purchase contract should document where your good faith deposit should go.

Marshall Lending can walk you through the pitfalls of getting a mortgage. Call us at 9162758775.