Don't Trip Yourself up While Buying your New Home

Some new homebuyers make the mistake of rushing out to buy new things for their home as soon as the seller accepts their offer and the lender approves the loan. 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 closing.

Don't empty your wallet on big-ticket items Although you may be listing ways to turn your new house into a showplace, try to stay away from big ticket purchases like appliances, electronics, or furniture. You will also want to avoid vacations and vehicle purchases until the closing of your loan. Financing new bedroom furniture with a store card or a bank credit card could jeopardize your credit worthiness when you need it the most. It's also a mistake to make those big purchases with cash. Lenders are examining your cash reserve when considering your loan.

Don't go on a career search. Consistency in your job history is a positive thing to lenders. Finding a new job (particularly one with a bump in salary) may not change your ability to qualify for a mortgage. However, switching jobs in the middle of the application process could influence whether or not you are approved.

Don't move money around or switch banks. Bank statements from the last two or three months for all of your accounts (checking, savings, money market, and others) will probably be reviewed as the lending institution considers your mortgage application. To eliminate potential fraud, most lending institutions need a thorough paper trail to determine the source of all cash. Even for practical purposes, transferring money or changing banks may make it more difficult for the lending institution to confirm your account history.

Don't give cash directly to your seller (usually in the case of of "for sale by owner") to be used as a "good faith" deposit. Until closing, any earnest money remains yours. Your earnest funds are to be used for your expenses upon closing; some sellers might not realize this. It's best to put the deposit into a trust account, or get a neutral party, like a lawyer, to hold it until the deal closes. The contract should dictate to whom the money goes if the transaction fails.

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

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Omni Mortgage Corp.

118-18 101st Avenue
Richmond Hill, NY 11419