Things to Avoid While Purchasing a Home

With the thrill 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 furniture store. Until the keys are handed over, there still remain some hurdles to jump. Here are some things to refrain from during the home buying process to be sure the transaction goes well.

Don't overspend on big-ticket items Although you will be dreaming of ways to turn your new home into a castle, avoid big ticket purchases like appliances, electronics, or furniture. You will also want to avoid vacations and vehicle purchases until your loan closes. You may send up red flags with your lender if you buy your appliances on your credit cards during your loan process. Because lending institutions are looking closely at your bank accounts, a large cash purchase is also a mistake.

Don't get a new job. Consistency in your career history is a good thing to banks and other lenders. Changing jobs may not compromise your ability to qualify for a mortgage loan - especially if you are getting a bigger paycheck. However, switching jobs during the approval process may affect whether or not you are approved.

Don't take your accounts to a new bank or move around your finances. Bank statements from recent months for accounts in your name (savings, checking, money market, and other assets) will probably be reviewed as the lender makes decisions regarding your application. 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 finances elsewhere - for whatever purpose - might hinder the review of your accounts.

Don't give cash directly to your seller (usually in the case of of "for sale by owner") to be considered earnest money. As a rule, your good faith deposit belongs to you, not the seller up until the deal closes. The good faith funds are to go toward your expenses closing; a individual seller may not know this. A neutral party, like an attorney can hold onto your funds, or you may place them temporarily into a trust account until you close. The disposition of earnest money, if your transaction fails, should be specified in the contract with your seller.

At Wize Mortgage LLC, we answer questions about this process every day. Call us at .