Don't Trip Yourself up While Buying a Home

In the rush of excitement 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. Until your keys are in hand, there still remain some hurdles to jump. Below you'll find a list of actions to avoid during this critical time of your home purchase.

Don't make expensive purchases. Although you will be listing ways to turn your new home into a showplace, avoid big ticket purchases like appliances, electronics, or furniture. We also recommend that you stay away from vacations and car purchases until the closing of your loan. Using credit cards to buy furniture could jeopardize your loan process by distorting your numbers. Since lenders are examining your financial accounts, a large cash purchase is also a bad idea.

Don't go on a job search. Your recent career history should show consistency. Changing jobs may not jeopardize your ability to qualify for a mortgage loan - particularly if you are going to be making more money. However, switching jobs in the middle of the application process might affect whether or not you are approved.

Don't switch banks or move finances around in your bank accounts. Most lenders will ask for recent bank statements for accounts in your name: savings, checking, money market, and other liquid assets. To avoid potential fraud, most lending institutions need a thorough paper trail to document the source of all incoming funds. No matter the purpose, switching banks or moving funds from one account to another could raise a red flag with your lender and slow down your application process.

Don't give your FSBO (for sale by owner) seller earnest money, delivered to his door. As a rule, your earnest money is yours, not the seller's until the deal closes. Although your FSBO seller may not realize this, the good faith funds should be used for your closing expenses. Find an attorney or other neutral party who is able to hold the funds or place them in a trust account until closing. The final disposition of earnest funds, in the case of a failed transaction, should be documented in the contract with your seller.

Omni Mortgage Corp. can answer questions about these "Don'ts" and many others. Call us at 7184417000.

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Omni Mortgage Corp.

118-18 101st Avenue
Richmond Hill, NY 11419