Things to Avoid While Purchasing a Home
What's more fun than buying a bunch of new furniture to adorn your future home? Nothing. But buying big ticket items before your loan closes could be trouble. Keep in mind that until you get the keys, your lender is watching you very closely. Here are some actions to refrain from before closing to be sure the transaction goes well.
Don't buy luxury items. You may be itching to turn your new living room into a home magazine cover, or celebrate your new dream home, but keep away from expensive purchases like furniture, jewelry, appliances, or vacations until closing. Financing your Plasma TVs with a store card or a bank credit card could jeopardize your credit worthiness during the time it means the most. It's also a bad idea to make those huge purchases using cash. Lenders are examining your cash on hand when considering your loan.
Don't look for a new job. Lending Institutions like to see a consistent job history on your application. Getting a new career before you apply for a mortgage may not get in the way of your approval at all. However, switching jobs in the middle of your loan process might influence whether or not you are approved.
Don't change banks or move money around in your accounts. As the lending institution considers your mortgage application, you will likely be required to submit bank statements for the last two or three months on your checking and savings accounts, money market funds and other liquid wealth. To eliminate fraud, lenders require a consistent portrayal of how you earn your living and where additional money comes from. No matter the reason, moving banks or transferring funds might raise a red flag with the lender and slow your approval process.
Listening to too many people
Everyone's an expert when it comes to real estate. Family, friends, work colleagues will all offer you advice - some with strings attached and some without. The only way that you will know whether you have secured a good property at a good price is if you put in the necessary hours and do the research. If you don't have time, then I recommend that you find a Buyer's Agent to do the work for you, a good one will save you thousands.