Things To Avoid When Buying a New Home

Alot of people who buy a new home in Wisconsin make the common mistake of over spending on decorations and other items for their house as soon as they have an accepted offer and their mortgage is pre-approved.

Unfortunately there are still alot of things that need to be done before the house is actually yours to call home and the keys are put into your hands. Below is a list of things to avoid when buying a home in Milwaukee that will guarantee your purchase experience goes smooth and is enjoyable!

Common Home Buying Mistakes To Avoid

Do Not Buy Expensive Items-Do not fall victim to your own excitement and purchase large ticket items like furniture, appliances or make any other large purchases like a car or vacation until after your loan is closed. What most people fail to realize is that if the use a credit card to make big purchases or even use a store card your debt to income ratios and possibly credit scores can be affected.

You may think that you can avoid this problem by using cash but what many buyers do not realize is that lenders will look at your cash reserves and if they are different then what you listed on the application it could cost you your loan!

Do Not Change Jobs- Most banks and mortgage lenders will want to see a stable employment history.In most cases a job change will not make you lose your loan, especially if it is in the same line of work and you will be making the same or more money. But in some instances a new job can raise some concerns with the lenders and it may delay or make you ineligible for your mortgage to buy a Milwaukee Home

Do Not Make Major Financial Change- Lenders are going to ask you to provide proof of deposits and assets, they will generally ask you for the last two or three months statement from banking, IRA and any other cash accounts that can be considered assets. This is to reduce the chance of loan fraud and help the lender develop a paper trail of proof and verify the information you supplied them

If you change banks or move money from account to account for whatever reason can make it hard for the lender to put this trail together and they may not approve your mortgage.

Never Directly Give a FSBO Buyer a Good Faith Deposit- A basic rule in real estate is that the good faith deposit is the buyers and not the sellers until after the transaction is done. Many FSBO sellers do not realize that the deposit is usually applied to the buyers closing expenses.

The best way to avoid this is to get a attorney or other legal party that can hold the money in a trust account and release it when you close on your home. Also make certain that your offer to purchase clearly states who the money should go to if the transaction doe not get completed.

Do Not Ignore Your Banks Requirements-Just because you were pre-approved for your loan does not mean that you are in the clear and guaranteed to get your loan, you are just pre-approved. In order to get a full loan approval you must meet certain lender guidelines and requirements.

Almost all mortgage lenders will ask you to provide them with bank statements, recent W-2's and other applicable paperwork. It is your job as the borrower to get them what they request as soon as possible, within 24 hours is all it should take you.

If you do not get the lender or mortgage broker what they ask you for your loan could get held up in processing which could lead to a rate lock expiring or a purchase date passing and another buyer stepping in and buying the home you wanted!