5 Things Not to do When Buying a Home

Verani Realty

Person with credit card and calculatorThe journey of buying a new home is filled with many things – stress, excitement, deadlines and helpful advice. In fact, you may get plenty of advice from friends, family and co-workers about what you should do to find the right real estate professional, the right lender, the right home and the right neighborhood. But, there are some things that you should not do, which most people will not warn you about.

Specifically, doing anything that will negatively affect your credit score could really hurt your chances of securing the loan needed to buy your home. Even seemingly harmless purchases or taking a couple of extra days to return paperwork could impact your offer.

Here are 5 things NOT to do when buying:

  1. Make large purchases – New furniture or a new car would look amazing in that new home, but the impact on your credit may prevent you from obtaining the loan you pre-qualified for. Any big purchases could negate the original decision to lend you money because it can alter your credit rating and has the potential of changing your debt-to-income-ratio. This is how much debt you have versus your income and ability to make payments on that debt. Don’t increase your debt until after you close.

  2. Change jobs – Lenders want stability and consistency in your job and your salary. During the loan process, changing jobs within the same industry is less of a concern than a new career, but lenders prefer the stability provided by the same employment for at least two years.

  3. Apply for a credit card – Any new credit inquiries will show on your credit report, which will be pulled again right before closing. Asking for more credit equates to instability and risk that you may not make your mortgage payment.

  4. Procrastinate about getting in required documents to your lender – This can completely slow down the entire loan process. Each individual lender has specific requirements for documentation. Provide what is needed in a timely manner if you want things to go smoothly. Your closing won’t happen without meeting these requirements.

  5. Not asking questions – There is no such thing as a stupid question when it comes to one of the biggest purchases you will ever make. Your real estate agent is there to help you through the entire process. Their job is to try and ensure that things go as smoothly as possible and that closing is completed. Good agents stay on top of things, keep track of the details of the day, and involve the seller, the buyer, the lender and the seller’s agent.

Knowing what not to do is almost as important as knowing what should be done to ensure a successful home buying experience. Working with an experienced, qualified real estate agent and guarding your credit-worthiness during the entire loan process will help you get to closing with ease.

Looking for an agent to help guide you through the ins and outs of buying a home? Search our list of qualified agents.

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