Things to avoid before you Buy a Home
Many homebuyers who are first-time buyers are surprised to discover just how many ways you can mess up a home purchase. You may have gotten your pre-approval, found an apartment you liked, and even made an offer. If you want to ensure that you don't mess up the deal, you'll need to be extremely careful until the sale is completed.
Continue reading to find out the things you should avoid prior to buying a house. These are the most common mortgage errors that are easily avoided. If you have an exceptional mortgage broker or real estate agent more than likely certain of these factors have been discussed before.
Follow these tips to safeguard yourself and your home purchase
Making mistakes is easy in the event that you've never purchased a home before. These mistakes in home buying can be avoided to lessen anxiety and make your life simple.
1. Don't miss loan payments.
All loans, including credit cards and auto loans, should be paid on time. The lender will examine your credit before approving your mortgage. If you've fallen behind on any payment, it could result in you losing the loan.
Many buyers mistakenly believe that once the lender signs their loan commitment, they are guaranteed to be a success. However, this is not the case!
Lenders are able to cancel a mortgage contract and may do so when they feel it is appropriate. A purchaser bought a home I had listed in Centralia IL. The buyer was selling and purchasing a home at the same time. They bought their previous property but failed to make the last mortgage payment.
Unfortunately, this was flagged in their credit report. This stopped the buyer from receiving the loan for the purchase.
They had to apply at an entirely new bank, under another program (FHA instead of the conventional). They lost hundreds of dollars, and their purchase was delayed.
2. Be careful before you consolidate your debt.
If you're finally planning to purchase a home the idea of debt consolidation might be appealing. Consolidation deals could allow you to combine all of your debts into one payment. This can be a great alternative for some.
However, there are often hidden fees and interest rates that can be soaring without warning. Consolidation may not improve your credit the way you'd like, so make certain to read the small print.
3. Avoid changing jobs.
You should not switch jobs between or between buying a house. One of the things that lenders look closely at is your track record in employment. Lenders want to make sure you're financially solid and are able to make your loan repayments.
You may turn off the lenders if your job before you apply for your loan. The lender might think you're unstable or don't have enough income to repay the mortgage. They appreciate stability.
It is best to keep the details of your move private until the time of closing.
4. Do not move your money around prior to obtaining the loan.
When a lender approves you, the approval is dependent on the present state of your finances. It is important to keep the same state - that which led to the pre-approval at all costs. Sometimes buyers make the mistake of shifting their funds around in order to better position themselves however this is not a good idea.
It is not recommended to change your financial situation before you receive your mortgage. The lender will ask for an explanation when you transfer funds between accounts.
They will require you to submit a thorough explanation of the reason for moving your money. Avoid this mistake. Make sure your money is in the same place prior to closing.
5. Don't open your bank accounts at a new financial institution.
Your bank may have made you angry or upset. Perhaps you came across an offer from a competitor bank that you can't refuse to accept. It is important to take advantage of the chance to switch banks because it can cause problems with your loan application.
6. Avoid buying an automobile.
Absolutely, buying a car in addition to buying a home is a common mistake. This is at the top of the list of what you shouldn't do before buying an apartment. The excitement of having the home of your dreams can leave you searching for ways to enhance your quality of life, such as purchasing a car.
7. Credit isn't a great choice for household and furniture items.
Another mistake that many buyers do is using credit to get ready for their new living spaces. You might want to start purchasing furniture and appliances to make your home more spacious to make it your own, but hold back.
The addition of new debt whether for furniture or other household-related items will change the status of your credit and may throw up a flag for the lender that leads to the loss of your loan approval.
As you can see it can be easy to make mistakes when getting a mortgage, especially if you are a first-time home buyer. We hope that you find this article useful and will not commit one of these financial mistakes.
Are you looking for a realtor Centralia IL who knows the ins and outs of Centralia, Illinois? Look no further than Cindy Quinn Real Estate! As a realtor in Centralia, Cindy has helped countless buyers and sellers navigate the local market.
820 E Noleman St, Centralia, IL 62801