Don't Trip Yourself up While Buying your Home

With the thrill that comes with an accepted offer and a "yes" from the lender, many homebuyers make the mistake of taking their enthusiasm straight to the mall or appliance store. It's wise to remember that until closing, your lender is watching you very closely. Below you'll find a list of actions to stay away from during this crucial time of your home purchase.

Don't empty your wallet on big-ticket items It may be tempting to order that new couch for the soon-to-be-yours parlor, but it's best to stay away from making large purchases like furniture, appliances, jewelry, or cars until closing. Your credit numbers could change suddenly if you purchase new furniture using credit cards. Since lenders are examining your bank accounts, a large cash purchase is also a mistake.

Don't go on a career search. Lenders like to see a consistent career history on your application forms. Changing jobs may not compromise your ability to qualify for a loan - especially if you are going to be making more money. However, getting a new career during your application process could influence whether or not you are approved.

Don't move money around or switch banks. Your lending institution will instruct the submission of recent bank statements for all of your accounts: checking, savings, money market, and other assets. To eliminate potential fraud, most lending institutions want detailed paperwork to determine the source of all cash. Changing banks or transferring money elsewhere - for whatever reason - could hinder the documentation of your funds.

Don't give your FSBO (for sale by owner) seller earnest money, delivered to his door. Until closing, any good faith deposit remains yours. Any good faith money is to go toward your expenses closing; some individual sellers may not realize this. You'll want to put the deposit into a trust account, or get an attorney to hold it until closing. Should your sale fall through, your contract with the seller should indicate where the earnest money should go.

At Omni Mortgage Corp., we answer questions about this process every day. Give us a call at 7184417000.