Before you buy a house — STOP!
You need to read this!
No one likes making mistakes, and making homebuying mistakes can have some serious ramifications. A home is most likely the largest purchase you will ever make in your life, so it is important to prepare yourself accordingly and be extremely careful during the process to prevent mistakes from happening.
Here are the top 9 homebuying mistakes that you should NOT do:
Mistake #1: Changing jobs, quitting your job or becoming self-employed.
This can affect your loan amount. Lenders like to see you have a stable income and employment. You may think your new job will have a better salary and increase your loan amount, but the instability of a job switch reflects negatively upon you. Stick with the job you have, or wait a substantial amount of time after a job switch to start the home buying process so your financial records are stable.
Mistake #2: Buying a brand new car.
When you make any large purchases, it increases your debt ratio and can affect your loan qualification amount. You don’t want massive debt lowering your loan amount.
Mistake #3: Late or missing loan payments for car, school or credit cards.
Lenders like to see you are responsible for making your payments on time. Be punctual. This also affects your credit score, which is important as well. For more information about your credit and to further understand how it works, click here for a summary from Experian.
Mistake #4: Paying off your credit cards.
Paying off your credit cards can have a positive or negative impact on your home loan amount. Make sure to consult with a lender. It’s always best to get a go-ahead from an expert first.
Mistake #5: Withholding debts or liabilities from your loan application
Like the saying goes, honesty is always the best policy!
You can slow down the process by withholding information, and the lender will find out everything anyway. It is better to be transparent. If there is anything the lender can do to help you, they will. We have to work as a team, and the lender is usually very experienced with how to improve your loan qualification.
Mistake #6: Opening up new credit cards.
This may cause your credit score to drop and affect your loan qualification options.
Mistake #7: Making large deposits or withdrawals from your bank account.
Unless the deposits are payroll deposits, any large deposit greater than 50% of your gross income will be questioned and will need to be sourced. NO CASH DEPOSITS.
Mistake #8: Making multiple credit checks.
Multiple credit checks can cause your credit score to drop and affect your loan qualifications.
Mistake #9: Co-signing a loan for someone.
Co-signing for any loan may cause you to qualify for less due to the payment on the loan being obtained.
Trust your lender! Always ask before doing ANYTHING drastic with your money during the homebuying process. When buying a house, you want to have a smooth transaction. You don’t want to mess up your chances of getting the house of your dreams, do you?
By avoiding the top 9 homebuying mistakes and downloading my FREE guide, you will be on the right path to buying a home. The guide includes crucial information about the types and amounts of Down Payments that you will need to figure out in order to purchase a home.