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 are still a few major hurdles to jump before the keys are handed over. Below you'll find a list of things to stay away from during this critical time of your home purchase.

Don't throw your money around. You may be itching to turn your new living room into a home magazine cover, or celebrate your new dream home, but stay away from major purchases like furniture, jewelry, appliances, or vacations until closing. Your lender may send up red flags if you purchase new furniture on your credit cards during your loan process. It's even a mistake to make those huge purchases using cash. Lending Institutions are looking at your available cash when considering your loan.

Don't look for a new job. Consistency in your work history is a good thing to lending institutions. Finding a new career (particularly one with a better salary) may not jeopardize your ability to qualify for your loan. However, if you switch careers before you qualify, your loan process could fail or be slowed down.

Don't move finances around or switch banks. As your lender considers your loan application, you will probably be asked to provide bank statements for recent months on your checking and savings accounts, money market funds and other liquid finances. To eliminate fraud, lenders require a consistent portrayal of how you earn your money and where additional money comes from. Changing banks or transferring finances to another account - no matter the reason - could make it difficult for the lender to review your funds.

Don't give your FSBO (for sale by owner) seller a "good faith" deposit, delivered to his door. As a rule, your good faith deposit is yours, not the seller's until the sale is final. Your earnest funds are to go toward your expenses upon closing; some sellers might not realize this. Get an attorney or other neutral party who can hang on to the deposit or put it in a trust account until you close. If your sale falls through, your purchase contract should indicate where the good faith funds should go.

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