Don't Trip Yourself up While Buying your Home

Some new homebuyers make the mistake of rushing out to buy things to fill their home as soon as the seller accepts their offer and the lender approves the loan. Until the house is really yours, there still remain some hoops to jump through. Here are some actions to stay clear of before closing to assure the transaction goes smoothly.

Don't throw your money around. You may be itching to turn your new living room into a showplace, or celebrate your new castle, but keep away from expensive purchases like furniture, jewelry, appliances, or vacations until the loan closes. Financing new furniture with a store card or a bank credit card could put your credit worthiness at risk when you need it the most. It's also a red flag to make those large purchases with cash. Lending Institutions are looking at your available cash when considering your loan.

Don't look for a new career. Lenders feel comfortable seeing a consistent job history on your paperwork. Finding a new career (particularly one with a bigger paycheck) may not jeopardize your ability to qualify for a mortgage. But in some cases, switching jobs during the mortgage approval process could raise concern and affect your approval.

Don't change banks or move money around in your accounts. Bank statements from the last two or three months for your accounts (checking, savings, money market, and other accounts) will probably be studied as the lender makes decisions regarding your loan application. To eliminate potential fraud, most loans require detailed paperwork to determine the source of all funds. No matter the purpose, changing banks or moving funds from one account to another can raise a red flag with your lender and impede your application process.

Don't give cash directly to your seller (generally in the case of of "for sale by owner") for earnest money. Until closing, any good faith deposit actually belongs to you. Your seller may not know that these good faith funds must go toward your expenses at closing. You'll want to put the money into a trust account, or get an attorney to hold it until the closing of the sale. If your sale falls through, the purchase contract should document where your good faith funds should go.

Riviera Funding NMLS#861382 CA DRE Broker #01186669 can walk you through the pitfalls of getting a mortgage. Call us at 3103737406.

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Riviera Funding NMLS#861382 CA DRE Broker #01186669

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