Don't Trip Yourself up While Buying a New Home
Many new homebuyers make the mistake of rushing out to buy things to fill their home soon after the seller accepts their offer and the loan is approved. It's best to remember that until your keys are in hand, your lender is watching you very closely. Here are some actions to avoid during the home buying process to assure your transaction goes well.
Don't overspend on big-ticket items You may be itching to turn your new living room into a home magazine cover, or celebrate your new castle, but keep away from major purchases like furniture, cars, appliances, or vacations until your loan closes. Your credit numbers could change suddenly if you make a huge purchase using credit cards. Using cash to buy expensive items can even create a problem: many banks consider your available cash when approving your application.
Don't go on a job search. Stability in your career history is a positive thing to lending institutions. Changing jobs may not jeopardize your ability to qualify for a loan - particularly if you are improving your salary. However, getting a new career during your loan process could influence whether or not you are approved.
Don't switch banks or move finances around in your bank accounts. Bank statements from the last two or three months for your accounts (savings, checking, money market, and others) will probably be analyzed as the lender makes decisions regarding your application. The lender will need to see a consistent rise and fall of your funds each pay period, in the interest of ruling out fraud. Even for innocent purposes, moving around cash or changing banks could make it difficult for the lending institution to confirm your bank history.
Don't give your FSBO (for sale by owner) seller earnest money, made out directly to him. Until the sale is complete, the good faith money actually belongs to you. Your good faith funds are to be used for your expenses upon closing; the FSBO seller may not understand this. You'll want to put the funds into a trust account, or get an attorney to hold them until closing. The disposition of earnest funds, in the case of a failed transaction, should be indicated in the purchase agreement with your seller.
Omni Mortgage Corp. can answer questions about these "Don'ts" and many others. Give us a call at 7184417000.