So, you’re looking to buy a house… and very quickly into this home buying process you have probably realized there are way more pieces to the puzzle than you ever realized. Everyone has advice on what TO DO, but have you heard what NOT to do when buying your first house?
Over the course of our careers we have worked with couples who have unfortunately made small financial accidents during the home buying process. It’s always so disappointing when this happens. Often times, a good intention like co-signing on a loan to help out a family member can change your credit score, leaving the bank unable to approve your home loan.
We absolutely hate seeing situations like this happen to good people and that’s why we want to outline some big no-no’s of the home buying process.
Understand that making small mistakes in the home buying process will unfortunately ruin your offer and make you ineligible for a home loan. That’s why today, we want to give you a little heads up about all of the things you shouldn’t do when buying a house.
#1 Do not purchase a new or even used vehicle.
This will affect your credit and risk your opportunity for a home loan.
#2 Do not change your job, quit your job, or undergo the process to become self-employed.
Banks want to see that you are consistent and can maintain a steady job because it means you’ll be able to better pay them back the money you’re borrowing.
Do not make large cash deposits into your account.
Large deposits of untraceable money look suspicious to the bank, like someone is trying to help you pay for your house. The bank wants to make sure that you are able to sustain your accounts without assistance from outside parties.
Do not spend your nest egg money that is intended for closing costs.
Closing costs can have a tricky way of sneaking up on you. Make sure that you have the money you need for the day of your signing.
Do not co-sign on a loan with anyone else.
Co-signing a loan will change your estimated credit scores, making it tricky for the back to approve you.
Do not ignore credit card payments or let other expenses go unpaid or paid late. Late payments affect your credit score.
You want your credit score to stay positive and consistent throughout the home buying process. Neglecting bills will negatively effect your score.
Do not forget to put your debts and liabilities on your loan application.
The bank knows about these debts and you could lose your opportunity for a loan if you’re caught lying or cheating on your application.
Do not by furniture or other large items on credit.
Please be sure that you avoid doing any of these things while you are in the process of buying your home. We would have for you to innocently jeopardize your opportunity for a new home.
If you have any other questions about what you should and shouldn’t do when buying a home, please be sure to reach out to us today.