Don't Trip Yourself up While Buying a New Home

In the rush of excitement that comes with an accepted offer and a "yes" from the lender, some homebuyers make the error of taking their enthusiasm straight to the mall or appliance store. It's best to remember that until you get the keys, your lender is watching your finances very closely. Here are some actions to stay clear of before closing to assure your transaction goes smoothly.

Don't buy luxury items. You may be itching to turn your new living room into a showplace, or celebrate your new castle, but keep away from big purchases like furniture, cars, appliances, or vacations until closing. Using plastic to buy new living room furniture could jeopardize your loan process by altering your numbers dramatically. Since lending institutions are perusing your bank accounts, a large cash purchase is also not advised.

Don't get a new career. Consistency in your job history is a good thing to lending institutions. Getting a new job before you apply for a mortgage loan may not get in the way of your approval at all. However, if you switch careers before approval, your mortgage process could fail or be slowed down.

Don't take your accounts to a new bank or move around your finances. Your lending institution will ask for recent bank statements for accounts in your name: checking, savings, money market, and other liquid assets. The lending institution looks for a steady rise and fall of your funds each pay period, in the interest of avoiding fraud. Even for practical purposes, transferring money or switching banks might make it more difficult for your lender to confirm your bank history.

Don't give your FSBO (for sale by owner) seller earnest money, delivered to his door. As a rule, your good faith deposit is yours, not the seller's up until the deal closes. The FSBO seller might not know that these good faith funds is to go toward your expenses at closing. It's best to put the money into a trust account, or get an attorney to hold it until the deal closes. The purchase agreement should indicate who gets the deposit if the home purchase fails.

Macon Mortgage can answer questions about these "Don'ts" and many others. Give us a call: 478-474-4600.

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