Don't Trip Yourself up While Buying your Home

What's better 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. Until closing, there still remain some hoops to jump through. We have listed some actions below we suggest you stay away from when waiting for closing.

Don't empty your wallet on big-ticket items Although you will be listing ways to turn your new home into a showplace, try to stay away from major purchases like appliances, electronics, or furniture. We also recommend that you avoid vacations and car purchases until the closing of your loan. Your credit numbers could be altered suddenly if you purchase new furniture using plastic. Using cash to purchase big-ticket items can also be an issue: many lending institutions consider your cash on hand when approving your mortgage.

Don't get a new career. Stability in your job history is a positive thing to lending institutions. Changing jobs may not compromise your ability to qualify for a mortgage loan - particularly if you are getting a better salary. But for some, getting a new job during the mortgage application process may bring concern and affect your application.

Don't switch banks or move cash around in your accounts. While your lender considers your mortgage package, you will likely be instructed to produce bank statements for the last two or three months on your saving and checking accounts, money market accounts and other liquid wealth. To detect fraud, lenders require a consistent portrayal of how you earn your money and where any additional funds come from. Switching banks or transferring money elsewhere - for whatever purpose - could make it harder for your lender to document your funds.

Don't give funds directly to your seller (commonly in cases of "for sale by owner") for earnest money. Your good faith deposit does not belong to the seller: it remains yours until the sale closes. Although your seller might not know this, any good faith money must go toward the buyer's closing expenses. You'll want to put the deposit into a trust account, or get a neutral party, like a lawyer, to hold it until the deal closes. If your sale falls through, your contract with the seller should indicate to whom this good faith funds should go.

At BeneGroup, Inc., we answer questions about this process every day. Call us: 4083956018.