What You Should Not Do When You’re Buying A House
Few things in this world are more exciting and stressful than the process of buying a house. Even if your heart is in the right place, there are a number of things that might go wrong during your home buying process. How can you make sure that the sale on your next home goes through smoothly and as planned?
In the home buying process, your attention to detail matters greatly. As you closely run through the steps with your real estate agent, make sure you avoid making the following mistakes. They can spell disaster or success for your home buying process.
Never Lose Track Of Your Money Trail
When you are buying a home, you must remember that your financial stability will be examined very closely. Lenders always need a plethora of documentation to prove that you have enough funds to be approved for your housing loan. If you want to give yourself the best chance of success, then you must know exactly where your money is coming from at all times. Make sure you backup your claims thoroughly and that you have the financial strength to actually pull the trigger on your upcoming home sale.
Don’t Exhaust Your Savings To Buy Your Home
Everyone knows just how expensive it actually is to buy property. Of course, many things feed into the final costs of your home sale (e.g., neighborhood value, closing costs, appraisals, etc.). Still, there are only so many ways that you can influence the house price in your favor.
As you gear up to purchase your next home, remember to conserve your savings account as much as possible. You should use a portion of your saved funds for the down payment, inspections, and so on, but your savings should not be your only financial resource for your home sale.
Avoid Making Late Payments On Your Bills
As we mentioned earlier, when you apply for a mortgage with your lender, they’ll review your financial documents with a fine tooth comb. They’ll be looking for any kinds of troubling discrepancies or late payments that could indicate you might not be the best candidate for a loan.
When you’re buying a house, you must present the best picture possible to your lender. That means, you should strive to never miss any payments on your bills or be late on your payments. A clean history of on-time payments will only strengthen your case with your lender.
Don’t Touch Your Credit Accounts
Many potential homebuyers will have the same thought cross their mind when they’re buying a house: “I should try to close some credit accounts so that I have less lines of credit open.” It’s a well-intentioned thought, but a poor impulse decision. Let’s be clear here: do not open or close any credit accounts when you’re buying a home!
Your lender will be actively examining your credit score and your accumulated debt when you apply for a loan. Sudden drops or fluctuations in your credit can negatively impact the success of your loan application. If you’re trying to purchase a new home for your family, keep your current credit accounts open and always remember to pay your monthly credit card bills.
Don’t Leave Your Current Job For A New One
Even if you’re itching to transition into a more fitting career, be patient and wait until you’ve finished buying a house! Your mortgage lender is reviewing your financial well-being and they want to see verification that you are maintaining a steady income. Abrupt changes or fluctuations to that income can throw a wrench into your mortgage application. So, just be patient and be strong until the home sale is final.
Resist The Urge To Purchase New Furniture
Yes, we know that you are excited to move into your new home. You are undoubtedly enthralled with the thought of turning those interior living spaces and rooms into your own with unique furnishings and so much more. You may even feel tempted to head to American Furniture Warehouse this weekend to pick up new furniture sets. But, you need to fight that impulse.
Trust us: It’s far wiser to patiently wait until your home sale is fully wrapped up before you go out and purchase a bunch of new furniture. Sudden large purchases during the buying process can create a situation where your loan is deferred by your lender.
There’s no reason to jump the gun here, so just sit tight on your furniture selections for now.
And Don’t Purchase A New Vehicle
In case it isn’t already abundantly clear, we’ll say it one more time: large impulse purchases can throw your home buying ambitions into jeopardy. You can put off your car purchase for a few months at least. For now, focus all of your energy on buying a house and putting your best foot forward for your financial well-being.
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