Call ​205-251-1115

Call ​205-251-1115

Avoid these "Pitfalls" when purchasing or refinancing a home. Although these may seem harmless, these "Pitfalls" can "Kill" your chance of buying or refinancing for the time being.....

        Pitfalls to Avoid....

Pitfall #1- Don't make an expensive purchase (not even furniture).  Although it maybe tempting to buy new furniture 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 credit cards could jeopardize your credit worthiness. Using cash to purchase big items can also create a problem because many banks take into consideration your cash reserve when approving your mortgage.

Pitfall #2- Don't get a new job. Lenders like to see a consistent work history, getting a new job during the loan approval process could raise some concerns and affect your application. 

Pitfall#3- Don't 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 a - could make it difficult for the lender to approve your loan.

Pitfall #4- Don't give earnest money directly to the seller. As a rule, your good faith deposit belongs to you, not to the seller, until the deal closes. The seller may not know that your good faith funds should be applied to your expenses at closing. Get an attorney or other neutral party to hold the deposit or put it in a trust account until you close on the home. Your purchase contract should dictate to whom the funds go to if the transaction falls through.

Pitfall #5- Don't ignore the 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.  Failure to submit certain qualifying documents could cause you to lose your loan and the financing you need to buy your home.

Pitfall #6 - Not asking your Loan Originator! When in doubt ask your loan officer before making any changes to your income, assets or credit for guidance. 

Buyer Beware!!