Here are the things to avoid when you are planning to buy a home:
Don't make an expensive purchase. Making any major purchase on credit prior to buying a home makes it harder to get approved for a mortgage. Lenders look at your debt to income ratio. As a rule of thumb, if you are buying a house within the next six months, do not make any big purchases. If you are planning to get new electronic equipment, jewelry or a vacation trip, get the house first and then you can think about the other purchases later.
Don't switch jobs. Lenders would like to see a consistent job history. In general, changing jobs will not affect your ability to qualify for a mortgage loan - unless your salary increases. Because the higher your salary gets, the higher loan you can obtain. But there are some cases where lenders look at the stability of your job. Sometimes, they will require an employment letter, if you are in the probationary period, the employer may not put in writing to how long they expect to keep you in your new position. This may result to getting your loan application denied. The best solution is to delay any job change until after your financing is complete.
Don't disregard your lender's requirements. You may have been pre-approved for the loan, but there will be other requirements to submit such as a copy of your bank statements, W2s and other paper works to submit before the lender can process your loan.
Don't purchase more than you can afford. Consider the mortgage loan payment, taxes, insurance, cost of utilities, home upkeep and lawn care, home owners' association dues, and so on. Ask yourself if these costs are within your budget. It is always better to live in a comfortable mortgage on a smaller home than struggle every month paying a mortgage on a house with more room than you really need.
It is important to consult with a Realtor to make sure you have the most current information and the bestteam working for you!
Don't make an expensive purchase. Making any major purchase on credit prior to buying a home makes it harder to get approved for a mortgage. Lenders look at your debt to income ratio. As a rule of thumb, if you are buying a house within the next six months, do not make any big purchases. If you are planning to get new electronic equipment, jewelry or a vacation trip, get the house first and then you can think about the other purchases later.
Don't switch jobs. Lenders would like to see a consistent job history. In general, changing jobs will not affect your ability to qualify for a mortgage loan - unless your salary increases. Because the higher your salary gets, the higher loan you can obtain. But there are some cases where lenders look at the stability of your job. Sometimes, they will require an employment letter, if you are in the probationary period, the employer may not put in writing to how long they expect to keep you in your new position. This may result to getting your loan application denied. The best solution is to delay any job change until after your financing is complete.
Don't disregard your lender's requirements. You may have been pre-approved for the loan, but there will be other requirements to submit such as a copy of your bank statements, W2s and other paper works to submit before the lender can process your loan.
Don't purchase more than you can afford. Consider the mortgage loan payment, taxes, insurance, cost of utilities, home upkeep and lawn care, home owners' association dues, and so on. Ask yourself if these costs are within your budget. It is always better to live in a comfortable mortgage on a smaller home than struggle every month paying a mortgage on a house with more room than you really need.
It is important to consult with a Realtor to make sure you have the most current information and the best
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