8 Financial Mistakes to Avoid When Buying a Home
If you are in the market for a home, you’ve probably been learning a lot about the things you need to do, but knowing what not to do can be just as important!
Imagine you’ve found the perfect home, negotiated the contract, made a loan application and completed all of the recommended inspections. Now you are happily making plans to move and begin making this house your home.
Navigating the Loan Process
You’ve no doubt heard that ‘it’s never over ’til it’s over‘, right? That is especially true about obtaining financing for your home purchase. Even if you’ve obtained a loan as recently as a few years ago, there are new rules in place today.
Verify Early and Often
You might think the water is safe when the lender completes the initial verifications of your income, assets and employment. Did you know that they repeat these verifications right before closing to make sure nothing important has changed? They’ll even call your employer the day of or the day before closing to be sure you still work there.
8 Mistakes to Avoid When Buying a Home:
- Don’t make any new major purchases that could affect your debt-to-income ratio
- Don’t apply for any new credit (this includes co-signing for someone else)
- Don’t quit your job or change jobs
- Don’t change banks
- Don’t open new credit accounts
- Don’t close or consolidate credit card accounts without advice from your lender
- Don’t make large deposits to your bank accounts unless you can verify the source
- Don’t talk to the seller without your agent
Your real estate professional and lender are working together to help you close escrow on your new home. If in doubt, seek their advice before making any big changes to your finances. There will be plenty of time for everything after you close, while you are living happily ever after.