Things
to Avoid While Buying Your Home
Many
borrowers make the mistake of rushing out to buy things. But there
are still a few major hurdles to overcome before your refinance
is completed. Here are some things to avoid once your loan has been
approved to assure your transaction goes as smoothly as possible:
Don't make an expensive purchase and don't apply for any
new credit. It may be tempting, but it is best to avoid
making major purchases (like furniture, cars, appliances, electronic
equipment, jewelry, or vacations), or applying for additional credit
until after the closing. Financing that furniture with a store credit
card or even one of your own credit cards could jeopardize your
credit worthiness during the time it means the most. Using cash
to purchase big items can also create a problem because many banks
take into consideration your cash reserve when approving your mortgage.
Don't change careers (and if possible, stay in your current
job). Lenders like to see a consistent job history. Generally,
changing jobs will not affect your ability to qualify for a mortgage
loan - especially if you are going to be making more money. But
for some people, getting a new job during the loan approval process
could raise some concern and affect your application.
Don't switch banks or move money around. As your
lender reviews your loan package, you will likely be asked to provide
bank statements for the last two or three months on your checking
accounts, savings accounts, money market funds and other liquid
assets. To eliminate potential fraud, most loans require a thorough
paper trail to document the source of all funds. Changing banks
or transferring money to another account - even if its just to consolidate
funds - could make it difficult for the lender to document your
funds.
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