Don't Trip Yourself up While Buying your Home
With the thrill that comes with an accepted offer and a "yes" from the lender, many homebuyers make the error of taking their enthusiasm straight to the mall or furniture store. There still remain a few major hurdles to jump before the keys are handed over. Below you'll find a list of actions to avoid during this critical time of your home purchase.
Don't make expensive purchases. You may be itching to turn your new kitchen into a home magazine cover, or celebrate your new castle, but stay away from major purchases like furniture, cars, appliances, or vacations until closing. You may send up red flags with your lender if you finance your furniture on your credit cards during your loan process. Using cash to buy big-ticket items can even create an issue: most lenders look at your cash on hand when approving your loan.
Don't get a new career. Your recent job history should show consistency. Getting a new job may not jeopardize your ability to qualify for a mortgage loan - particularly if you are going to be making more money. But for some people, getting a new career during the mortgage application process might raise concern and hinder your application.
Don't switch your accounts to a new bank or move around your cash. Most lenders will ask for recent bank statements for accounts in your name: savings, checking, money market, and other assets. To detect potential fraud, most lenders want a thorough paper trail to document the source of all cash. Changing banks or transferring funds elsewhere - no matter the purpose - could hinder the review of your funds.
Don't give your FSBO (for sale by owner) seller a "good faith" deposit, made out directly to him. As a rule, your good faith money is yours, not the seller's until the deal closes. Your FSBO seller might not realize that your good faith money is to go toward your expenses upon closing. It's advisable to put the funds into a trust account, or get a neutral party, like a lawyer to hold them until the deal closes. The disposition of good faith money, in the case of a failed transaction, should be written in the purchase agreement with your seller.
Omni Mortgage Corp. can walk you through the pitfalls of getting a mortgage. Give us a call: 7184417000.