Don't Trip Yourself up While Buying a Home

With the thrill that comes with an accepted offer and a "yes" from the lender, some homebuyers make the error of carrying their enthusiasm straight to the mall or appliance store. There still remain a few major hurdles to jump before the keys are handed over. Here are some things to refrain from before closing to assure the transaction goes smoothly.

Don't overspend on big-ticket items Although you will be dreaming of ways to turn your new home into a castle, avoid major purchases like appliances, electronics, or expensive furnishings. You will also want to keep away from vacations and vehicle purchases until your loan closes. Your credit numbers could be altered suddenly if you make a huge purchase using plastic. Because lenders are looking closely at your financial accounts, a large cash purchase is also not advised.

Don't go on a career search. Your recent work history should show stability. Changing jobs may not compromise your ability to qualify for a loan - particularly if you are getting a better salary. But for some people, changing jobs during the loan application process may raise concern and hinder your application.

Don't switch banks or move finances around in your accounts. Bank statements from the last two or three months for all of your accounts (savings, checking, money market, and others) will likely be analyzed as the lending institution considers your application. The lending institution is looking for a steady flow of your money each month, in the interest of avoiding fraud. Even for innocent reasons, transferring finances or changing banks could make it difficult for the lending institution to document your account history.

Don't give money directly to your seller (usually in the case of of "for sale by owner") to be used as a "good faith" deposit. As a rule, your good faith deposit is yours, not the seller's until the sale is final. Although your seller might not understand this, any good faith funds should be used for the buyer's closing expenses. We recommend that you put the funds into a trust account, or get an attorney to hold them until the closing of the sale. The contract should specify who gets the deposit if the home purchase does not go through.

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