Don't Trip Yourself up While Buying your Home

What's better than buying a bunch of new stuff to go in your future home? Not much. But buying big ticket items before closing can be a mistake. Until the house is really yours, there still remain some hurdles to jump. Below you'll find a list of things to stay away from during this crucial time of your home purchase.

Don't empty your wallet on big-ticket items Although you will be listing ways to turn your new home into a showplace, avoid big ticket purchases like appliances, electronics, or furniture. We also recommend that you avoid vacations and car purchases until your loan closes. Using credit cards to buy furniture could compromise your lending process by distorting your numbers. It's also a red flag to make those big purchases with cash. Lenders are looking at your available cash when considering your loan.

Don't get a new career. Lenders feel comfortable seeing a consistent work history on your application. Changing jobs may not jeopardize your ability to qualify for a loan - particularly if you are improving your salary. However, if you switch careers before your loan is approved, your loan process could fail or be bogged down.

Don't take your accounts to a new bank or move around your money. Most lenders will require you to submit recent bank statements of your accounts: checking, savings, money market, and other liquid assets. In order to detect fraud, lenders require clear documentation of how you earn your money and where any additional funds come from. No matter the purpose, switching banks or moving money from one account to another can raise a red flag with the lender and slow your approval process.

Don't give your FSBO (for sale by owner) seller a "good faith" deposit, delivered to his door. As a rule, your good faith money belongs to you, not the seller until closing. Although your seller might not know this, the good faith funds should be used for the buyer's closing expenses. An attorney or other type of neutral party can hang onto your deposit, or you may put it temporarily into a trust account until you close. The final disposition of good faith funds, in the case of a failed transaction, should be specified in the contract with your seller.

Financial Edge Mortgage Corp. can answer questions about these "Don'ts" and many others. Call us at 425-508-9988.

Looking to Buy?

Are you looking to buy a house? Let us help you. Just fill out as much of the information below that you want and we'll get right back to you, with no obligation to you. We guarantee your privacy.

Your Information

* Name:

* Email:

Phone:

Street Address:

City:

State:

Country:

Zip/Postal Code:

Some Details

When Are You Moving?:

Where Are You Moving:

Your Price Range?:

Number of Bedrooms?:

Number of Bathrooms?:

Size In Square Feet?:

Any Comments, Concerns, Or Questions:

SMS Messaging:

By checking the box, you agree that Financial Edge Mortgage Corp. may call/text you about your inquiry, which may involve use of automated means and prerecorded/artificial voices.. Message/data rates may apply.