Don't Trip Yourself up While Buying your Home

In the rush of excitement 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. There still remain a few major hurdles to jump before the house is realy yours. We have listed some things below we suggest you avoid when waiting for your loan to close.

Don't overspend on big-ticket items You may be itching to turn your new kitchen into a showplace, or celebrate your new dream home, but stay away from major purchases like furniture, cars, appliances, or vacations until the loan closes. Your lender may send up red flags if you purchase new appliances on your credit cards in the middle of your loan process. It's also a mistake to make those large purchases using cash. Lending Institutions are looking at your cash reserve when considering your loan.

Don't go on a job search. Lending Institutions feel comfortable seeing a consistent career history on your application. Changing jobs may not jeopardize your ability to qualify for a mortgage loan - especially if you are getting a bigger paycheck. However, switching careers in the middle of the loan process could influence whether or not you are approved.

Don't switch banks or move finances around in your bank accounts. Your lending institution will instruct the submission of recent bank statements for all of your accounts: savings, checking, money market, and other liquid assets. In order to avoid fraud, lenders will need a clear and consistent picture of how you earn your living and where additional money comes from. Switching banks or transferring finances to another account - for whatever purpose - may hinder the review of your accounts.

Don't give your FSBO (for sale by owner) seller a "good faith" deposit, made out directly to him. Your earnest money does not belong to the seller: it remains yours until the transaction is final. Although your FSBO seller may not realize this, the good faith money must be applied to the buyer's closing expenses. You'll want to put the money into a trust account, or get a neutral party, like an attorney, to hold it until the closing of the sale. Should your sale fall through, your purchase contract should indicate where this earnest money should go.

At Greystone Loans, Inc., we answer questions about this process every day. Give us a call: 9094671090.