Things to Avoid While Purchasing a Home

With the thrill that comes with an accepted offer and a "yes" from the lender, many homebuyers make the error of taking their enthusiasm straight to the mall or appliance store. There still remain a few major hurdles to jump before your loan closes. We have given you a list of things below you will want to stay away from when waiting for your loan to close.

Don't empty your wallet on big-ticket items It may be tempting to buy that new Turkish rug for the soon-to-be-yours parlor, but it's best to avoid making large buys like furniture, appliances, jewelry, or vacations until your home loan closes. Your credit numbers could change suddenly if you make a huge purchase using plastic. Using cash to purchase big-ticket items can also be a mistake: most lenders consider your cash reserve when approving your mortgage.

Don't get a new job. Consistency in your career history is a positive thing to lenders. Changing jobs may not jeopardize your ability to qualify for a loan - particularly if you are getting a better salary. However, if you switch careers before approval, your loan process could fail or be stalled.

Don't change banks or move finances around in your accounts. As your lender reviews your mortgage package, you will likely be asked to submit bank statements for recent months for your checking accounts, savings accounts, money market funds and other liquid assets. The lender is looking for a steady flow of your money each month, in order to rule out fraud. Switching banks or moving money elsewhere - no matter the reason - might make it harder for your lender to document your funds.

Don't give funds directly to your seller (usually in cases of "for sale by owner") for earnest money. As a rule, your good faith money is yours, not the seller's until the sale is final. Some FSBO sellers may not realize that your earnest money is to go toward your expenses at closing. Find a lawyer or other neutral party who will hold the deposit or put it in a trust account until you close. The final disposition of good faith money, in the case of a failed transaction, should be specified in the purchase agreement with your seller.

At Omni Mortgage Corp., we answer questions about this process every day. Call us: 7184417000.