What to Avoid During your Home Purchase

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. Until the house is really yours, there are still some hoops to jump through. We have listed some things below we suggest you avoid when waiting for your loan to close.

Don't buy luxury items. You may be tempted to buy that new couch for the soon-to-be-yours parlor, but it's advisable to avoid making large buys like furniture, appliances, electronic equipment, or cars until closing. Your credit numbers could change suddenly if you make a huge purchase using plastic. It's even a mistake to make those big-ticket purchases using cash. Lenders are looking at your cash on hand when considering your loan.

Don't get a new career. Consistency in your job history is a positive thing to banks and other lenders. Changing jobs may not affect your ability to qualify for a loan - especially if you are going to be making more money. But for some people, changing jobs during the mortgage application process may bring concern and hinder your approval.

Don't move money around or change banks. As the lender considers your loan package, you will likely be instructed to produce bank statements for the last two or three months for your saving and checking accounts, money market funds and other liquid assets. In order to avoid fraud, lenders want to see a consistent portrayal of how you earn your living and where any additional funds come from. Changing banks or transferring money to another account - for whatever purpose - may hinder the review of your accounts.

Don't give funds directly to your seller (commonly in the case of of "for sale by owner") for a "good faith" deposit. As a rule, your good faith money is yours, not the seller's up until closing. Some FSBO sellers may not know that the good faith money should go toward your expenses upon closing. Get a lawyer or other neutral person who can hang on to the funds or put them in a trust account until closing. The final disposition of earnest money, if your sale falls through, should be written in the purchase agreement with your seller.

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