With the thrill that comes with an accepted offer and a "yes" from the lender, some homebuyers make the mistake of taking their enthusiasm straight to the mall or furniture store. Keep in mind that until your keys are in hand, your lender is watching you very closely.
We have given you a list of things below you will want to stay away from when waiting for your loan to close.
Although you may be dreaming of ways to turn your new home into a showplace, try to stay away from big ticket purchases like appliances, electronics, or furniture. We also recommend that you avoid vacations and vehicle purchases until the closing of your loan. Your lender may send up red flags if you buy your electronics on your credit cards during your loan process. Because lending institutions are examining your bank accounts, a large cash purchase is also not advised.
Your recent job history should show consistency. Getting a new job before you start the application process for a mortgage loan may not affect your approval at all. But for some people, getting a new job during the mortgage application process may bring concern and affect your approval.
As the lending institution considers your loan application, you will likely be asked to submit bank statements for the last few months for your saving and checking accounts, money market accounts and other liquid finances. To eliminate fraud, lenders need a clear and consistent picture of how you earn your money and where any additional funds come from. Switching banks or moving funds elsewhere - even if its merely to consolidate funds - could hinder the documentation of your funds.
Until closing, any deposit actually belongs to you. Your seller may not realize that this earnest money is to be used for your expenses at closing. It's advisable to put the deposit into a trust account, or get a neutral party, like a lawyer, to hold it until the closing of the sale. and most certainly use a personal check from your personal checking account for the ernest money. Your contract should document to whom the funds go if the home purchase fails.
At First Community Mortgage, we answer questions about this process every day.
Call us at (334) 285-8850