Don't Trip Yourself up While Buying your New Home

	Shopping for a mortgage? We'd be thrilled to answer your questions about our mortgage offerings! Give us a call today at 760.975.0255. Ready to get started? Apply Here.

What's better than buying a bunch of new stuff to go in your future home? Nothing. But buying big ticket items before closing could be trouble. There still remain a few major hurdles to jump before the keys are handed over. 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 You may be tempted to buy that new couch for the soon-to-be-yours den, but it's best to avoid making big ticket purchases like furniture, appliances, electronic equipment, or cars until closing. Financing your furniture with a store card or a bank credit card could put your credit worthiness at risk during the time it means the most. Because lenders are perusing your bank accounts, a large cash purchase is also not advised.

Don't look for a new job. Lending Institutions look for a consistent work history on your paperwork. Changing jobs may not compromise your ability to qualify for a mortgage loan - especially if you are getting a better salary. However, if you switch careers before you qualify, your loan process could fail or be bogged down.

Don't take your accounts to a new bank or move around your finances. Your lender will require you to submit recent bank statements of accounts in your name: checking, savings, money market, and other liquid assets. Your lending institution is looking for a steady flow of your money each month, in the interest of avoiding fraud. No matter the purpose, switching banks or moving funds from one account to another might raise a red flag with the lender and slow down your qualification process.

Don't give your FSBO (for sale by owner) seller a "good faith" deposit, cash in hand. Until the completion of the deal, the good faith deposit remains yours. Although some FSBO sellers may not know this, your good faith funds must go toward your closing expenses. Find an attorney or other neutral party who can hang on to the funds or put them in a trust account until you close. Should your home purchase fail, your purchase contract should document where the earnest money should go.

American Capital Home Loans can answer questions about these "Don'ts" and many others. Call us: 760.975.0255.