Don't Trip Yourself up While Buying your Home

Some new homebuyers make the mistake of rushing out to buy new things for their home soon after the seller accepts their offer and the loan is approved. Until your loan closes, there still remain some hurdles to jump. We have given you a list of actions below you will want to stay away from when waiting for your loan to close.

Don't overspend on big-ticket items You may be tempted to order that new sofa for the soon-to-be-yours parlor, but it's advisable to stay away from making large buys like furniture, appliances, electronic equipment, or vacations until closing. Your credit numbers could change suddenly if you purchase new furniture using plastic. Using cash to buy big items can even be an issue: many lending institutions consider your available cash when approving your mortgage.

Don't look for a new career. Your recent work history should show consistency. Getting a new job before you start the application process for a mortgage loan may not compromise your approval at all. However, if you switch careers before approval, your loan process could fail or be slowed down.

Don't move money around or change banks. Your lending institution will ask for recent bank statements on your accounts: checking, savings, money market, and other assets. To avoid fraud, lenders look for a clear and consistent picture of how you earn your money and where any additional money comes from. Changing banks or moving money elsewhere - for whatever reason - could make it difficult for the lender to review your funds.

Don't give your FSBO (for sale by owner) seller earnest money, made out directly to him. Until the sale is complete, any good faith deposit remains yours. The good faith money is to go toward your expenses closing; some individual sellers may not realize this. We recommend that you put the deposit into a trust account, or get a neutral party, like a lawyer, to hold it until the closing of the sale. If your sale falls through, the purchase agreement should document to whom the earnest money should go.

Omni Mortgage Corp. can walk you through the pitfalls of getting a mortgage. Call us: 718-441-7000.

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