Things To Avoid When You Are Buying Ann Arbor Real Estate
OK, you’ve found the Ann Arbor condo of your dreams and negotiated a fantastic real estate purchase agreement. You may have even already had your home inspection. You probably have a list of items to do, but you could be missing the list of what to avoid.
Here are some things to avoid for the duration of your transaction to assure your purchase goes as well as possible:
1. Don’t inform all your friends and family about the home.
It may be appealing to tell all your friends about the property and even to arrange to have your family see it. The issue with this is that you can get psychologically tied up in the property when there are still hurdles to leap over. In Ann Arbor the purchase isn’t complete till the money changes hands and you’ve gotten the warranty deed. Until then you need to be objective, not emotional. Telling your friends about the home you are buying can link your ego to the purchase and that can influence you to make bad decisions. To optimize a real estate transaction you need to feel you have the power to walk away. It will be much more difficult if you already own the home in your mind. Like we’ve said for years, fall in love with the home after you own it.
2. Don’t make any major purchases. You may intend to send off for that new lounger for your soon-to-be livingroom, but it is best to steer clear of making major purchases like boats, furniture, cars, appliances, jewelry, or vacations until after the closing. Financing that transaction with a credit card could endanger your credit worthiness during the time it has the greatest effect on your financial situation. Using cash to purchase big items can also produce a problem because many banks take into account your cash reserve when approving your home loan. It is much easier to get credit after you purchase a home. So put off those major purchases if at all possible.
3. Don’t switch employers. Lenders like to see a consistent employment history. Unless you are relocating for a new position it is best to avoid any employment changes. In general, if you are working in the same sort of position, changing jobs will not influence your ability to meet the criteria for a home loan. But with banks being more careful these days this is an additional event to try to steer clear of.
4. Don’t switch your financial institutions. As part of the home loan approval procedure you will usually be asked to provide bank and investment account statements for the last three months on your accounts where you have your liquid assets. To reduce the potential for fraud, banks these days require a exhaustive paper trail to document the source of all assets you will be using to purchase your home. Changing banks, paying off one credit card with a different one or transferring money from one institution to another, could make it difficult for the lender to plainly see where your buying funds are coming from. What they are really interested in is seeing the trail of funds and making sure you are not borrowing funds for a down-payment or closing costs to acquire your Ann Arbor home.
5. Don’t dispose of the receipts from your home buying expenditures. Some lenders allow you to be reimbursed at the time all the final papers are signed for some costs like your home inspection and your lawyer’s fees. But they won’t allow it without the paid receipts. They might also be useful during tax season. Hang on to them.
6. Don’t drag your feet when you are following up with your lender’s requests. You are responsible for helping your bank get your financing approved. At the time they ask for documentation do your best to supply those as promptly as you are able to. It is easier to get difficulties handled if the bank discovers them early in the process.
Avoiding these six things can make your Ann Arbor real estate buying experience smoother and much more enjoyable.
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