What to Avoid During a Home Purchase
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In the rush of excitement that comes with an accepted offer and a "yes" from the lender, many home buyers make the mistake of carrying their enthusiasm straight to the mall or appliance store. Keep in mind that until you get the keys, your lender is watching your accounts very closely. Below you'll find a list of things to avoid during this critical time of your home purchase.
Don't buy big-ticket items. You may be tempted to buy that new easy-chair for the soon-to-be-yours parlor, but it's advisable to avoid making major buys like furniture, appliances, electronic equipment, or cars until closing. Financing new furniture with a store card or a bank credit card could put your credit worthiness at risk when you need it the most. It's even a mistake to make those large purchases with cash. Lending Institutions are examining your cash reserve when considering your loan.
Don't look for a new job. Consistency in your work history is a positive thing to lending institutions. Changing jobs may not affect your ability to qualify for a loan - particularly if you are getting a bigger paycheck. However, switching careers in the middle of your loan process may affect your approval.
Don't switch banks or move money around in your accounts. Most lenders will ask for recent bank statements for accounts in your name: savings, checking, money market, and other liquid assets. In order to avoid fraud, lenders need clear documentation of how you earn your money and where additional funds come from. Even for innocent reasons, transferring finances or switching banks might make it difficult for your lending institution to confirm your bank history.
I answer questions about this process every day. Give me a call: (818)645-7035.