Don't Trip Yourself up While Buying your Home
Some new homebuyers make the mistake of rushing out to buy things to fill their home soon after the seller accepts their offer and the lender approves the loan. There still remain a few major hurdles to jump before the house is realy yours. Below you'll find a list of actions to avoid during this crucial time of your home purchase.
Don't buy big-ticket items. You may be itching to turn your new living room into a showplace, or celebrate your new castle, but stay away from big purchases like furniture, cars, appliances, or vacations until closing. Your credit numbers could change suddenly if you purchase new furniture using plastic. Since lenders are perusing your bank accounts, a large cash purchase is also not advised.
Don't get a new career. Lenders look for a consistent job history on your application forms. Finding a new career (particularly one with a bigger paycheck) may not hinder your ability to qualify for your loan. But in some cases, changing careers during the loan approval process might raise concern and hinder your approval.
Don't move money around or switch banks. Your lending institution will require you to submit recent bank statements on accounts in your name: checking, savings, money market, and other assets. To avoid potential fraud, most lenders want a detailed paper trail to verify the source of all incoming funds. Even for innocent purposes, transferring money or switching banks could make it more difficult for your lending institution to confirm your account history.
Don't give your FSBO (for sale by owner) seller a "good faith" deposit, made out directly to him. Until the sale is complete, the good faith money actually belongs to you. Although some individual sellers might not know this, any good faith funds should go toward your closing expenses. An attorney or other type of neutral party can hold your earnest funds, or you may place them temporarily into a trust account until closing. The purchase agreement should indicate who keeps the money if the home purchase does not go through.
Omni Mortgage Corp. can answer questions about these "Don'ts" and many others. Call us: 718-441-7000.