Many new homebuyers make the mistake
of rushing out to buy things to fill their home with as soon as the
seller accepts their purchase offer and the lender pre-approves their
loan. But there are still a few major hurdles to overcome before the
keys are handed out. Here are some things to avoid during the home
buying process to assure your transaction goes as smoothly as possible:
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Don't make an expensive purchase. It may be
tempting to order that new sofa for your soon-to-be living room, but its
best to avoid making major purchases like furniture, cars, appliances,
electronic equipment, jewelry, or vacations 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.
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Don't get a new 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.
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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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Don't disregard your lenders requirements. You
may have been pre-approved for the loan but your work with the lender
is far from over. In order to process your loan, you need to meet
certain requirements. Your lender will need copies of your bank
statements, W2s and other paperwork. It is up to you to get it to him or
her as soon as possible. Failure to submit certain qualifying documents
could cause you to lose your loan and the financing you need to buy
your home.
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