Don't Trip Yourself up While Buying your New Home

In the rush of excitement that comes with an accepted offer and a "yes" from the lender, many homebuyers make the error of carrying their enthusiasm straight to the mall or appliance store. There still remain a few major hurdles to jump before closing. We have given you a list of things below you will want to avoid when waiting for your loan to close.

Don't throw your money around. You may be itching to turn your new kitchen into a showplace, or celebrate your new dream home, but keep away from expensive purchases like furniture, jewelry, appliances, or vacations until closing. Your credit numbers could be altered suddenly if you purchase new furniture using plastic. Since lending institutions are perusing your financial accounts, a large cash purchase is also a bad idea.

Don't look for a new job. Your recent career history should show stability. Getting a new job may not affect your ability to qualify for a mortgage loan - especially if you are getting a better salary. But for some people, switching jobs during the mortgage application process may bring concern and affect your application.

Don't move cash around or change banks. As the lender considers your loan package, you will likely be instructed to provide bank statements for recent months for your checking and savings accounts, money market funds and other liquid wealth. In order to avoid fraud, lenders will need clear documentation of how you earn your living and where additional money comes from. Changing banks or moving money elsewhere - no matter the reason - might hinder the review of your accounts.

Don't give money directly to your seller (usually in cases of "for sale by owner") for earnest money. Your good faith deposit does not belong to the seller: it is actually yours until closing. Although some FSBO sellers might not realize this, the good faith money must be applied to your closing expenses. We recommend that you put the funds into a trust account, or get an attorney to hold them until closing. The final disposition of earnest money, in the case of a failed transaction, should be specified in the purchase agreement with your seller.

At AmeriBest Mortgage, we answer questions about this process every day. Call us: 3217777277.