Don't Trip Yourself up While Buying your 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. Until your loan closes, there still remain some hoops to jump through. We have given you a list of actions below you will want to avoid when waiting for your loan to close.

Don't buy big-ticket items. You may be itching to turn your new kitchen into a showplace, or celebrate your new castle, but stay away from expensive purchases like furniture, jewelry, appliances, or vacations until your loan closes. Using plastic to buy new living room furniture could compromise your lending process by distorting your numbers. Using cash to purchase big-ticket items can even create a bad idea: many banks consider your cash reserve when approving your loan.

Don't look for a new career. Lending Institutions look for a consistent job history on your paperwork. 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, changing careers during the mortgage approval process may bring concern and stymie your approval.

Don't move finances around or switch banks. Your lending institution will require you to produce recent bank statements of all of your accounts: checking, savings, money market, and other assets. To detect fraud, lenders look for a consistent portrayal of how you earn your money and where additional wealth comes from. No matter the reason, changing banks or moving money from one account to another may raise a red flag with the lender and slow your loan process.

Don't give your FSBO (for sale by owner) seller earnest money, cash in hand. As a rule, your good faith deposit is yours, not the seller's up until closing. Your earnest money is to be applied to your expenses closing; some individual sellers might not understand this. We recommend that you put the funds into a trust account, or get a neutral party, like a lawyer to hold them until closing. Your contract should document where the funds go if the transaction does not go through.

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