What to Avoid During your Home Purchase
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What's better than getting a bunch of new furniture to go in your new home? Not much. But making big-ticket purchases prior to closing can be a misstep. There still remain a few major hurdles to jump before the keys are handed over. Below you'll find a list of actions to avoid during this critical time of your home purchase.
Don't empty your wallet on big-ticket items You may be itching to buy that new easy-chair for the soon-to-be-yours den, but it's best to stay away from making big ticket buys like furniture, appliances, electronic equipment, or cars until your home loan closes. Your credit numbers could be altered suddenly if you make a huge purchase using plastic. Using cash to buy big items can even create a bad idea: many banks consider your cash reserve when approving your mortgage.
Don't get a new career. Consistency in your job history is a positive thing to banks and other lenders. 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 approval, your loan process could fail or be stalled.
Don't switch banks or move finances around in your accounts. While your lending institution considers your mortgage loan package, you will likely be asked to provide bank statements for the last few months for your checking and savings accounts, money market funds and other liquid assets. To eliminate potential fraud, most loans need detailed paperwork to document the source of all incoming funds. Even for innocent reasons, moving around funds or changing banks could make it harder for the lending institution to confirm your bank history.
At Keystone Financial Services, we answer questions about this process every day. Call us at (949) 836-4925.