What to Avoid During your Home Purchase

	In the market for a new mortgage loan? We will be glad to assist you! Call us at 954-359-3000. Want to get started? Apply Here.

Many new homebuyers make the mistake of rushing out to buy things to fill their home soon after the seller accepts their offer and the loan is approved. There are still a few major hurdles to jump before the keys are handed over. Here are some things to avoid during the home buying process to assure your transaction goes well.

Don't buy luxury items. You may be itching to buy that new sofa for the soon-to-be-yours living room, but it's best to avoid making major buys like furniture, appliances, electronic equipment, or cars until closing. Using credit cards to buy furniture could compromise your loan process by altering your numbers dramatically. Since lending institutions are examining your bank accounts, a large cash purchase is also not advised.

Don't go on a career search. Stability in your career history is a positive thing to lenders. Getting a new job may not jeopardize your ability to qualify for a mortgage loan - particularly if you are getting a better salary. However, if you switch careers before you qualify, your process could fail or be stalled.

Don't change banks or move money around in your bank accounts. As the lender reviews your mortgage loan package, you will probably be asked to provide bank statements for recent months on your saving and checking accounts, money market accounts and other liquid assets. To avoid potential fraud, most lending institutions want detailed paperwork to verify the source of all incoming funds. No matter the reason, changing banks or moving money from one account to another may raise a red flag with the lender and slow down your approval process.

Don't give your FSBO (for sale by owner) seller a "good faith" deposit, made out directly to him. Until closing, the earnest money actually belongs to you. A FSBO seller might not realize that the good faith funds should go toward your expenses upon closing. Find an attorney or other neutral person who can hold the funds or put them in a trust account until you close. If your transaction fails, the purchase agreement should dictate where your good faith deposit should go.

Florida State Mortgage Group, Inc. can walk you through the pitfalls of getting a mortgage. Call us: 954-359-3000.