Your credit and your income are essential parts of financing a new home. When you first speak with a lender you can review your credit score and history to see if there is anything that you need to do to help your purchasing power. You can also find out how much down payment you will need as well as the closing costs involved in the purchase of a new home. Together you can get a game plan together for making the financial process as smooth as possible.
Once you have your financing lined up and ready to go, it is crucial that your credit and your financial picture does not change during the process. Your lender will recheck your credit just prior to your closing date and also verify that your employment status has not changed. Buyers unknowingly put themselves in the position of losing their financing for their new home.
Here are 10 things to avoid when buying a home:
- Don't quit your job or change jobs.
- Don't change banks.
- Don't apply for new credit or have inquiries made into your credit.
- Don't close any credit accounts unless your lender advises you to.
- Don't make large purchases on your credit and increase your debts.
- Don't buy a car, boat, appliances, furniture, etc. on credit.
- Don't miss a credit card or loan payment or make a late payment.
- Don't make large cash deposits.
- Don't move around money without a paper trail.
- Don't spend the money you need for a down payment and closing costs.
Remember, this advice applies up until the loan is completed and you have possession of the property. Speak to your lender for more details.
Keeping these Ten Commandments in mind can help you set yourself up for a successful road to homeownership. Do you have a game plan together for buying a new home? Schedule a free buyer consultation phone call to help you determine your best plan of action. I look forward to connecting!
