Things to Avoid While Purchasing a New Home

In the rush of excitement that comes with an accepted offer and a "yes" from the lender, many homebuyers make the error of carrying their enthusiasm straight to the mall or appliance store. It's wise to remember that until your keys are in hand, your lender is watching your accounts very closely. Here are some things to refrain from during the home buying process to be sure the transaction goes well.

Don't buy luxury items. You may be itching to turn your new kitchen into a showplace, or celebrate your new dream home, but keep away from big purchases like furniture, jewelry, appliances, or vacations until closing. Financing your stainless steel appliances with a store card or a bank credit card could put your credit worthiness at risk during the time it means the most. It's also a red flag to make those big-ticket purchases with cash. Lending Institutions are examining your available cash when considering your loan.

Don't look for a new job. Consistency in your job history is a positive thing to banks and other lenders. Finding a new job (particularly one with a bump in salary) may not hinder your ability to qualify for your mortgage loan. But for some people, changing careers during the mortgage loan application process may bring concern and affect your application.

Don't switch banks or move money around in your accounts. Your lending institution will require you to produce recent bank statements for all of your accounts: savings, checking, money market, and other liquid assets. To eliminate fraud, lenders look for a consistent portrayal of how you earn your living and where any additional funds come from. No matter the purpose, changing banks or moving money from one account to another could raise a red flag with the lender and slow down your qualification process.

Don't give money directly to your seller (generally in the case of of "for sale by owner") for earnest money. As a rule, your good faith deposit belongs to you, not to the seller until closing. The earnest funds are to go toward your expenses closing; some sellers may not understand this. Find a lawyer or other neutral party who is able to hang on to the funds or place them in a trust account until you close. If your sale falls through, your contract with the seller should indicate where the earnest money should go.

Omni Mortgage Corp. can walk you through the pitfalls of getting a mortgage. Give us a call at 7184417000.