Mortgage Planning Group

Advice to the First Time Home Buyer in Pittsburgh

There is always a thrill that comes from an accepted offer and a “yes” from the lender. However, a first time home buyer in Pittsburgh may make the mistake of taking their enthusiasm straight to an appliance store or furniture shop. It is wise to remember that until you have the keys to your new Pittsburgh home in your hands, you are under the eye of Big Brother – your bank lender.

What should a first time home buyer in Pittsburgh avoid during this crucial time?

Don’t buy luxury items

You may be itching to turn your new living room into a showplace, or celebrate your new dream home, but stay away from expensive purchases like furniture, cars, appliances, or vacations until after closing. Your credit score could change suddenly if a first time home buyer purchases a new furniture using credit cards. Using cash to buy big items can even be an issue: most lenders consider your available cash when approving your loan.

Don’t look for a new job

This is one of the biggest faux pas a first time home buyer in Pittsburgh could make. Stability in your job history is a positive thing to lending institutions. Getting a new job before you start the application process for a loan may not get in the way of your approval at all. For example, if you start a new job in another city and decided to buy a house there. However, if you switch careers before your loan is approved, your loan process could fail or be stalled.

Don’t switch banks or move finances around in your accounts

Most lenders will instruct the submission of recent bank statements of your accounts: savings, checking, money market, and other assets. Lenders want to see a consistent flow of funds each pay period from a first time home buyer in Pittsburgh. This helps them to rule out fraud.Even for innocent reasons, moving around finances or switching banks may make it difficult for your lender to verify your account history.

Don’t give earnest money directly to the seller in a FSBO (for sale by owner) purchase

Until the completion of the deal, the good faith deposit remains yours. Your seller might not realize that the earnest money should be applied to your expenses upon closing. A neutral party, like an attorney can hold onto your earnest funds, or you may put them temporarily into a trust account until you close. Should your home purchase fail, the purchase agreement should indicate where this good faith fund should go.

Mortgage Planning Group can help a first time home buyer in Pittsburgh PA live happily ever after in the home of their dreams

If you have any questions as you go through the mortgage loan process, contact Mortgage Planning Group. Getting you the home of your dreams is our mission and we want to help you get there the as quickly and efficiently as we can. Give us a call today to get started on the process today.