With the thrill that comes with an accepted offer and a “yes” from the lender, some homebuyers make the error of taking their enthusiasm straight to the mall or appliance store. Until your keys are in hand, there are still some hurdles to jump. Here are some things to stay clear of during the home buying process to assure your transaction goes smoothly.

Don’t empty your wallet on big-ticket items

It may be tempting to order that new sofa for the soon-to-be-yours living room, but it’s best to stay away from making major buys like furniture, appliances, electronic equipment, or vacations until closing. Financing new furniture with a store card or a bank credit card could put your creditworthiness at risk during the time it means the most. Using cash to buy expensive items can even create a mistake: many lending institutions take into consideration your cash on hand when approving your mortgage.

Don’t get a new career.

Lending Institutions like to see a consistent job history on your application. Getting a new job may not compromise your ability to qualify for a mortgage loan – especially if you are improving your salary. However, if you switch careers before approval, your process could fail or be slowed down.

Don’t switch banks or move cash around in your accounts.

While the lender reviews your mortgage application, you will probably be instructed to produce bank statements for recent months for your saving and checking accounts, money market funds and other liquid assets. To eliminate fraud, lenders require a consistent portrayal of how you earn your living and where any additional funds come from. Even for practical reasons, transferring finances or switching banks may make it more difficult for the lending institution to verify your account history.

Don’t hand over earnest money directly to the seller in a FSBO (for sale by owner) purchase.

Your earnest money does not belong to the seller: it remains yours until closing. Your good faith money is to go toward your expenses closing; your FSBO seller might not know this. A neutral party, like an attorney can hang onto your deposit, or you may put it temporarily into a trust account until closing. The disposition of good faith money, in the case of a failed transaction, should be specified in the purchase agreement with the seller.

At Todd Swanson, Mortgage Consultant, we answer questions about this process every day. Call us at 6192263234.