10 Mistakes You Can't Afford to Make Before Closing on Your Home

LARGE-PURCHASE ITEMS | Do not buy things like cars, boats, or other expensive items.Big ticket expenses mean nothing but added debt to your lender. This will delay the process of buying a home no matter if the price tag is well within your means. JOB CHANGE | Do not quit or switch jobs. Changing jobs even if for good reason could potentially cause your lender to question your financial stability. CREDIT CHANGE | Do not open or close credit lines.Taking on new debt, no matter how small, can throw off your debt-to-income ratio which could potentially disqualify you from mortgage lending. Wait to open new credit cards and extend credit lines until the home buying process is over. BANKING | Do not change bank accounts.Wait until your home is closed to withdraw, deposit, or transfer large amounts of money. Generally, if you move more than $500 at a time it will impact your loan approval because your loan approval was based on your finances at the time of application, and now they have changed. GHOSTING | Do not ghost your loan officer. Be sure to answer all questions and communication.Ghosting will delay the process, waste valuable time, and potentially cause important information to be missed. DELINQUENCIES | Do not pay bills late.A missed payment even months before you apply could lower your credit score and jeopardize your chances of securing a loan. You especially don’t want to miss current mortgage payments, this will make you ineligible for a loan from most lenders for at least a year. CREDIT CHECKS | Do not let anyone other than your loan officer run a credit check on you.Credit inquiries can lower your credit score as much as 10 points each time it’s checked. LOANS | Do not sign or cosign a loan.Having multiple outstanding loan payments or opening additional loans while in the process of purchasing your home is not recommended.  LARGE DEPOSITS | Do not make any large deposits other than your paycheck.Suspiciously large deposits may raise questions from your lender and they may have to adjust your mortgage calculations accordingly. PAYDAY | Do not take an advance on your salary.All of your finances have been locked in at the time of approval. Substantial additional income post-approval could reset the process.

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10 Mistakes You Can’t Afford to Make Before Buying a Home

There are many moving parts involved when purchasing a home. In the current competitive market, you need to be strategic before buying to achieve your goals. Your best bet to score your dream home is by avoiding these common mistakes before the home-buying process begins. If you don’t plan ahead to avoid these errors- you’ll be at risk for potential problems that could be detrimental to the purchase of your home! AVOID THESE MISTAKES! GET YOUR FREE GUIDE TODAY.

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What NOT to do Before Buying a Home

Buying a home can be stressful, so you don’t want to make it even harder by making the wrong choices beforehand. Your finances will be monitored until your loan closes so you need to be mindful of a few things during the home-buying process to avoid any mishaps.  Here’s a list of what not to do before buying a home:DON’T... Open a New Line of Credit Taking on new debt, no matter how small, can throw off your debt-to-income ratio which could potentially disqualify you from mortgage lending. Wait to open new credit cards and extend credit lines until the home buying process is over. Miss Credit PaymentsA missed payment even months before you apply could lower your credit score and jeopardize your chances of securing a loan. You especially don’t want to miss current mortgage payments, this will make you ineligible for a loan from most lenders for at least a year. Move Money AroundWait until your home is closed to withdraw, deposit, or transfer large amounts of money. Generally if you move more than $500 at a time it will impact your loan approval because your loan approval was based on your finances at the time of application, and now they have changed. Change JobsChanging jobs even if for good reason could potentially cause your lender to question your financial stability. Especially avoid job changes that include going from full-time to part-time or from salary to commission. Lease a CarLeasing a car means more debt to your lender. This will delay the process of buying a home no matter if the car is well within your means.   Source

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