What to Avoid During a Home Purchase

Some new homebuyers make the mistake of rushing out to buy new things for their home soon after the seller says "yes" and the lender approves their loan. There still remain a few major hurdles to jump before the keys are handed over. Here are some things to avoid before closing to be sure the transaction goes smoothly.

Don't empty your wallet on big-ticket items You may be itching to buy that new sofa for the soon-to-be-yours living room, but it's best to stay away from making major purchases like furniture, appliances, jewelry, or vacations until closing. Using credit cards to buy furniture could compromise your loan process by distorting your numbers. Because lending institutions are perusing your bank accounts, a large cash purchase is also a bad idea.

Don't look for a new job. Consistency in your job history is a positive thing to lending institutions. Getting a new job may not jeopardize your ability to qualify for a mortgage loan - especially if you are getting a better salary. However, switching jobs during your approval process may influence whether or not you are approved.

Don't change banks or move cash around in your bank accounts. Your lender will require you to provide recent bank statements on accounts in your name: savings, checking, money market, and other assets. The lender wants to see a consistent rise and fall of your funds each month, in order to rule out fraud. Changing banks or moving funds to another account - even if its only to pool funds - might make it harder for the lender to document your funds.

Don't give your FSBO (for sale by owner) seller a "good faith" deposit, cash in hand. As a rule, your good faith deposit belongs to you, not to the seller until the sale is final. The good faith funds are to go toward your expenses upon closing; some FSBO sellers may not realize this. Find a lawyer or other neutral party who is able to hold the money or place it in a trust account until you close. Your contract should document to whom the money goes if the home purchase falls through.

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

Looking to Buy?

Are you looking to buy a house? Let us help you. Just fill out as much of the information below that you want and we'll get right back to you, with no obligation to you. We guarantee your privacy.

Your Information
Some Details
By checking the box, you agree that Omni Mortgage Corp. may call/text you about your inquiry, which may involve use of automated means and prerecorded/artificial voices.. Message/data rates may apply.

Omni Mortgage Corp.

118-18 101st Avenue
Richmond Hill, NY 11419