We all know that owning your own home is one of life’s great pleasures. Yet many home buyers make bad choices before they buy a home that make the purchase process more difficult than it needs to be. When you decide that you are going to buy a home in the near future you need to practice some basic financial discipline and more importantly, common sense. Below we want outline the most common mistakes, things you want to avoid doing while going through the home buying process. These tips are especially important for any first time home buyer.
- Close credit accounts – even if it seems positive, it can initially impact your credit score in a negative way. Leave all credit accounts alone unless your lenders advises differently.
- Open new credit accounts or apply for credit – Basically in a nut shell, do NOT change anything with your credit, buy or close and accounts. Keep everything the same unless your lender/bank officer says otherwise.
- Buy a car or any taking on any new financial obligations or loans. This includes buying new furniture for your house before closing, don’t do it!
- Change your job – this falls under the common sense category. Please do not change employers without first discussing it with your lender. In addition, if you receive a promotion, demotion, raise or cut in pay, notify your lender immediately as this could impact your mortgage loan approval.
- Make all loan payments on time, don’t miss any payments on car loans, credit card bills, etc.
- Move money around bank accounts, make random cash deposits in your bank account. Again, talk to you lender before doing anything like this, they will advise you on paper trail and documentation needed.
- Spend your savings – your loan approval is based on your savings at the time of loan application. Save, Save, Save.
Basically in a nut shell, do NOT change anything with your credit, buy or close and accounts. Keep everything the same.
Five Stars Mortgage is available to assist all Florida and Georgia home buyers 7 days a week. Please call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest mortgage info. For quick service please submit the “Request Contact” form at the top right side of your screen. Mobile users can find the short Request Contact Form here.
What NOT to do before your closing on your new home