Things to Avoid While Buying a Home

In the rush of excitement that comes with an accepted offer and a "yes" from the lender, some homebuyers make the error of carrying their enthusiasm straight to the mall or appliance store. There are still a few major hurdles to jump before the house is realy yours. Here are some actions to refrain from during the home buying process 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 stay away from big purchases like furniture, cars, appliances, or vacations until your loan closes. Your credit numbers could change suddenly if you make a huge purchase using plastic. It's even a bad idea to make those huge purchases using cash. Lending Institutions are examining your cash on hand when considering your loan.

Don't get a new job. Your recent job history should show stability. Changing jobs may not jeopardize your ability to qualify for a loan - particularly if you are improving your salary. But for some people, switching jobs during the loan approval process might raise concern and affect your approval.

Don't switch banks or move money around in your accounts. While the lender considers your mortgage application, you will likely be required to provide bank statements for the last two or three months for your checking and savings accounts, money market accounts and other liquid wealth. To avoid potential fraud, most loans want detailed paperwork to verify the source of all funds. Switching banks or transferring money to another account - even if its merely to pool funds - may make it harder for your lender to review your funds.

Don't give earnest money directly to the seller in a FSBO (for sale by owner) purchase. As a rule, your good faith money is yours, not the seller's until the sale is final. Some sellers might not know that these good faith funds is to be applied to your expenses upon closing. Get a lawyer or other neutral person who will hang on to the funds or put them in a trust account until closing. Should your sale fall through, the purchase contract should indicate where the good faith funds should go.

AmeriBest Mortgage can walk you through the pitfalls of getting a mortgage. Give us a call: 3217777277.