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 appliance store. There still remain a few major hurdles to jump before closing. Below you'll find a list of things to stay away from during this crucial time of your home purchase.

Don't empty your wallet on big-ticket items Although you may be planning ways to turn your new home into a castle, avoid big ticket purchases like appliances, electronics, or furniture. You will also want to avoid vacations and car purchases until the closing of your loan. Your credit numbers could be altered suddenly if you purchase new furniture using credit cards. It's also a red flag to make those large purchases using cash. Lending Institutions are examining your cash on hand when considering your loan.

Don't look for a new job. Your recent career history should show consistency. Getting a new career before you start the application process for a mortgage may not get in the way of your approval at all. However, finding a new job during the approval process may affect whether or not you are approved.

Don't move cash around or switch banks. Bank statements from the last two or three months for accounts in your name (checking, savings, money market, and other assets) will likely be studied as the lender makes decisions regarding your mortgage application. Your lender looks for a consistent flow of your funds each month, in the interest of avoiding fraud. Even for practical purposes, moving around money or switching banks might make it more difficult for the lender to verify your account history.

Don't give your FSBO (for sale by owner) seller a "good faith" deposit, delivered to his door. Until closing, the earnest money remains yours. Although some FSBO sellers may not realize this, the earnest money must go toward your closing expenses. Find a lawyer or other neutral person who will hold the funds or put them in a trust account until closing. The disposition of earnest funds, in the case of a failed transaction, should be specified in the purchase agreement with the seller.

Greystone Loans, Inc. can answer questions about these "Don'ts" and many others. Call us: 9094671090.