Things to Avoid While Purchasing a New Home

Many new homebuyers make the mistake of rushing out to buy new things for their home soon after the seller accepts their offer and the lender approves the loan. There are still a few major hurdles to jump before the house is realy yours. We have listed some actions below you will want to stay away from when waiting for closing.

Don't overspend on big-ticket items Although you may be listing ways to turn your new house into a showplace, avoid major purchases like appliances, electronics, or expensive furnishings. We also recommend that you stay away from vacations and car purchases 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 large purchases with cash. Lenders are examining your available cash when considering your loan.

Don't go on a career search. Consistency in your career history is a positive thing to banks and other lenders. Getting a new job before you apply for a mortgage loan may not jeopardize your approval at all. But for some, switching jobs during the mortgage loan application process could bring concern and affect your application.

Don't switch banks or move cash around in your bank accounts. Most lenders will require you to provide recent bank statements on all of your accounts: savings, checking, money market, and other liquid assets. To eliminate fraud, lenders will need a clear and consistent picture of how you earn your living and where any additional money comes from. Even for innocent reasons, moving around finances or switching banks may make it difficult for the lender to confirm your bank history.

Don't give your FSBO (for sale by owner) seller earnest money, delivered to his door. Your good faith deposit does not belong to the seller: it is actually yours until the transaction is final. The earnest money is to go toward your expenses upon closing; some sellers may not realize this. A neutral party, like an attorney can hold onto your funds, or you may place them temporarily into a trust account until closing. If your home purchase fails, your purchase agreement should dictate where this good faith funds should go.

Wize Mortgage LLC can answer questions about these "Don'ts" and many others. Call us: .