What to Avoid During your Home Purchase

In the rush of excitement that comes with an accepted offer and a "yes" from the lender, many homebuyers make the mistake of carrying their enthusiasm straight to the mall or furniture store. It's best to remember that until you get the keys, your lender is watching you very closely. Here are some things to avoid during the home buying process to assure your transaction goes smoothly.

Don't make expensive purchases. Although you will be listing ways to turn your new house into a castle, try to stay away from major purchases like appliances, electronics, or furniture. We also recommend that you avoid vacations and car purchases until your loan closes. Financing your stainless steel appliances with a store card or a bank credit card could jeopardize your credit worthiness during the time it means the most. Since lenders are looking closely at your bank accounts, a large cash purchase is also not advised.

Don't get a new career. Lenders like to see a consistent career history on your paperwork. Finding a new career (particularly one with a better salary) may not change your ability to qualify for your loan. However, if you switch careers before your loan is approved, your process could fail or be stalled.

Don't take your accounts to a new bank or move around your finances. Your lending institution will instruct the submission of recent bank statements for accounts in your name: savings, checking, money market, and other liquid assets. Your lending institution is looking for a steady flow of your funds each pay period, in the interest of avoiding fraud. Changing banks or transferring money elsewhere - for whatever reason - could hinder the documentation of your accounts.

Don't give your FSBO (for sale by owner) seller a "good faith" deposit, delivered to his door. As a rule, your good faith deposit is yours, not the seller's until closing. Any good faith funds are to be used for your expenses upon closing; some FSBO sellers might not understand this. A neutral party, like an attorney can hold your funds, or you may place them temporarily into a trust account until you close. The final disposition of earnest money, in the case of a failed transaction, should be specified in the purchase agreement with the seller.

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