|
Author: Alex Rad Article source: http://www.kabish.com/. Used with author's permission.
Home Buying Don'ts
Your home buying process is well underway. The sellers accepted your offer to purchase. The home is officially under contract and you're counting down the days to closing. The lender pre-approved you, so buying the house is a sure thing, right?
Not quite. Nothing is certain until the keys are in your hands. There are still major hurdles to get past before you close, and your actions between now and closing can create headaches, slowdowns, and even stop the transaction.
1. Don't Make a Major Purchase
You've just found out your credit is A+. That's great news, because a new car would look fantastic in the driveway of your new home. But hang on--if you are depending on a mortgage to move in, you'd best wait until after closing to buy the car.
An increase in your debt to income ratio reduces the amount of monthly income available for your mortgage payment.
If you tack on a higher car payment, the bank might decide you cannot afford the home.
Using cash to purchase the car could also create a problem, since banks consider cash reserves when approving your mortgage. If you must make a major purchase before closing, talk to your loan officer before you do it.
2. Don't Change Jobs Unless It's Necessary
Home Lenders like to see a consistent job history. They aren't usually as nervous if you change jobs within the same field, but it's better to stay put until the keys to the house are in your hand.
3. Don't Give an Earnest Money Deposit Directly to a For Sale By Owner Seller
Your good faith deposit should go into a trust account. Some for sale by owner sellers don't understand that funds are to be applied to your expenses at closing.
I've heard many stories about sellers who spent the deposit money prior to closing. When the transactions didn't take place for valid reasons--such as financing or repair issues, the buyers had to fight for a refund.
Find an attorney or other neutral party who will hold the deposit for you until closing day and make sure your contract dictates what happens to the funds if the transaction doesn't close.
4. Don't Let Your Emotions Take Over
Keep a cool head during the entire home buying process, especially during and after an inspection. Be realistic. No home is perfect, especially older homes. It's not unusual for new owners to take care of some repairs themselves. Don't let the seller's refusal to do a small repair kill the deal on a home you truly love.
On the other hand, don't fall so much in love with the house that you'll buy it no matter what needs to be done--unless you're absolutely sure you can handle it emotionally and financially. Decide what type of repairs you can realistically tackle, then stick with the decision.
5. Don't Forget to Switch Utilities
That sounds simple, but you'd be surprised how many people forget to apply for utility service at their new home. Call the utility companies as soon as you have a contract. Find out how many days lead time they need to switch the service, then get back with them when you have a firm closing date.
Don't forget to discontinue services at your old home.
6. Line Up Your Hazard Insurance
A no-brainer, right? But it's another often-forgotten task that buyers scramble to take care of at the last minute. Before closing, your lender will want to see an insurance binder showing you have coverage for the new home. Get it as early as possible so that closing isn't delayed.
In some locations, additional types of insurance coverage might be necessary. Talk to your lender about insurance requirements well before the closing date.
7. Don't Become Best Friends with the Seller
I'll get some flack on this one. It's great to be friendly, but don't get into too many long discussions with the sellers, because personality conflicts often cloud judgments.
Remember, this is their home. You're no doubt excited about moving in, and if you didn't like the house you wouldn't have offered to buy it. But you'll make changes--everyone does. A casual statement about "ripping up that ugly carpet" might be hurtful enough to keep the seller from negotiating with you about repairs or other issues that crop up.
8. Don't Panic if the Appraisal Comes in Low
At least not at first. There are some things you (and your agent) can do to correct the problem. Study your options.
9. Don't Go It Alone
If you're working with an agent, it's the agent's duty to track many of the day to day details that involve the lender, the seller, or the seller's agent.
10. Don't Ignore Home Lender Requirements
Know what is expected of you and take care of it. For instance, a Certificate of Eligibility is required to move forward on a VA loan. That's something you must handle yourself. Answer lender questions and provide required paperwork as quickly as possible--your closing depends on it. Special Loans (http://www.special-loans.com) specialises in providing secured finance where banks will not. If you have credit problems, are fully employed or self-employed, have income issues or employment issues, we have the best solution for you! We provide Non-conforming home loans offering wholesale home loan rates as well as Standard Home Loans, unsecured personal loans, refinance products.
http://www.special-loans.com
Identity Theft - Dont Think You Are Immune
You do all you can. You shred your documents and statements. You are very careful how you give out your financial information. It might not be enough.
Six Keys To Build Vision - Point Two
Living life based purely on our own personal needs is really living life at the most primitive level. It makes no allowance for the wonder of investing into our...
Teaching Kids to Read
More money in the classrooms are needed. No child without progress is demanded. Time to move forward.
A Concept That Could Double Youre Income in Mystery Shopping
A Simple and Powerful concept that could increase you're income in mystery shopping.
Creating A Wedding Budget You Can Afford
How to create the best wedding possible within a budget that you can afford
Spiritual Belief
Man has suddenly re-awakened to the fact that he is part of a vast cosmos, and that we are not just a speck of dust on a chunk of matter, revolving around the s...
You Dont Need Inspiration!
Or do you? Writers write. You shouldn't wait around for inspiration to come. But sometimes, there are days you can't get anything written down. Or you're at a ...
Stock Trading - Daddy, Why Arent We Rich?
One Saturday morning, while he was sitting at his computer studying the market, David's 7 year old daughter came up, tugged at his shirt sleeve, and said, "Dadd...
Motor Vehicle Accident Insurance Claim Guide
This is a FREE Insurance Claim Guide
Things To Consider When Buying A Home
When buying a home, it is easy to get caught up in emotions such as love at first site. This can lead to disaster. The best way to buy a home is to apply your d...
Fast Weight Loss Using Herbs And Spices
I wonder how much it is generally known that the benefits of
using herbs and spices can speed up your weight loss efforts,
by quite a considerable amount actu...
Stop, I Want to Get Off the Merry-Go-Round!
If you've never written for a magazine or newspaper before, getting that big break seems to be an impossible dream. Understanding your targeted publication's ne...
Flu Vaccine Hysteria
Last week the media circus surrounding the flu vaccine reached a crescendo. Half of all the flu vaccine supply is not available this year! Why? Because the Br...
Build Your Primary Business & Create a Nice Secondary Income
Push Button Marketing tool, training, and resourse at no charge for life! Reguardless if your a newbie or a guru this is head and shoulders above the rest.
Breast Feeding Basics For Your Newborn Baby
This article dispels the common myth that bottle milk and breast milk are the same. Discover which one is better for your baby and why this choice can help main...
It Is Up To You
One of the first things successful people realize is the old adage, "if it is to be, it is up to me." That is, for you, the fact that your success and your cour...
Importance of Thanksgiving
Thanksgiving is the most important holiday of the year. Oh, sure, Christmas is grand, and I know it has many, many fans. I'm not knocking Christmas, but Thanks...
Know Your Muscle Building Exercises - The Shoulders
We all have our favorite exercises for each body part but sometimes it is useful to look at our training program from a different perspective. This article outl...
Why Outsource? How Does Outsourcing Help Companies in Rationalizing Their Costs?
Outsourcing has been the cause of much debate in recent times. There have been arguments for and against outsourcing. The fact remains that in these days of hea...
Is it a Crime to be a White Guy in A Tan Car?
I had the unpleasant experience of being pulled over the other day by a Southaven Policeman. I was already behind schedule and I needed to get cat food and pic...
Fitness Scams
Caveat emptor is Latin for "let the buyer beware". Nowhere is this phrase more applicable than in the weight loss industry of today.
Jealous Again - Jealousy Among Musicians
Jealousy - do you feel it? Do you sense it in others? Does it hinder your relationships with other musicians? Does it sap your confidence? Does it block your cr...
The Top 10 Mistakes Job Seekers Should Avoid In Contacting An Employer
There are numerous tools and resources available to guide job seekers through the steps of a career transition. These tools are very useful and suggest much tha...
The Rise of Multinational Virtual Corporations
In a world which is increasingly competitive and where organisations are required to undertake greater levels of risk in order to compete, those companies that ...
|
Print this page