5 Things You Should Avoid When Buying A House
If you are starting the journey of buying a new house the excitement of what’s to come can be all consuming. Everything from interior design to landscaping to paint colors - a whole new world is in your future.
However, you have to remain practical and keep in mind that the first big step of the process is getting pre-approved for a mortgage, and your actions prior to the lender agreeing to fund the loan are important. Knowing this, we have listed five things you should avoid doing up until closing day. Let’s dive in:
-Because overusing credit can be a red flag, you want to make sure to keep your available credit as high as possible - which means keeping low balances on any lines of credit you have open. Essentially, you don’t want to buy all new furnishings for your new home before your loan closes.
-Making mysterious deposits or withdrawals is another action you want to avoid as the lender will keep a close eye on your bank statements during the pre-approval and underwriting process. There will need to be an explanation for unusual activity so it’s best to avoid large deposits or withdrawals that don’t normally take place.
-Being late with bills before closing can really hurt you, and potentially even ruin your deal. Some lenders will require 12 months of consecutive on-time payments in order to qualify for a loan as roughly a third of your credit score is comprised of your payment history.
-It’s best to avoid co-signing a loan and making yourself financially liable for someone else’s debt during the loan process. Lenders will see this as another financial obligation which will be a factor when they determine your ability to take on a mortgage.
-Changing jobs is another action you shouldn’t take during the approval process because lenders want to see reliable, stable income. Job-hoping can create hurdles for you and raise red flags.
Be sure to check back each week for more real estate and Omaha, NE community information! Also, are you following us on Facebook? If not, be sure to check us out here!
