Things Not To Do Before You Purchase A Home!

Posted by Admirals Cove Homes on Feb 7, 2014 in Home, Real Estate | 0 comments

So you have decided that this is the year is the right year for you to buy a home. Well you should know that there are things that if you do prior to buying a home can turn out to be some very costly mistakes. Some of these mistakes can turn out to be more costly than others and even end up costing you a lot more money or worse risk you losing the home all together.

1.)   Be Reckless With Your Credit: Obviously it is a poor idea to be reckless with your credit at anytime but it is an especially bad decision prior to trying to buy a home. You should actually even be very careful with all of your minor expenses as well because they can typically add up quickly and end up affecting you when you go to obtain a loan.

2.)   Move Your Money Around: It is a big mistake to shuffle your money around prior to trying to buy a home. You will need to explain any unusual or unexpected withdrawals and deposits. Stuffing a chunk of cash away even if it was a gift to help you with a down payment can and will raise some red flags that can end up affect you obtaining a loan.

3.)   Change Jobs: It goes without saying that losing your job will greatly affect you obtaining a loan, but moving from job to job can also be a poor move that winds up being a mistake affecting you obtaining a loan. However, if by chance you do have an unforeseen job change make sure that you keep your realtor and loan officer in the loop.

4.)   Pay Bills Late Or Get Behind: Having any late payment hit your credit report will affect your credit score and can greatly influence your lender when you go to obtain your loan. Your Payment history directly affects about thirty three percent of your credit score. One singular 30 day late payment can adversely affect your credit score by 60 to 110 points.

5.)   Co-Sign On Someone Else’s Loan: Co-signing on someone else’s loan is arguable a poor decision at anytime but is an especially risky choice prior to trying to purchase a home.  It basically means that you will be financially liable for the decisions that someone else makes. You never want to add any unnecessary debt that will affect your debt to income ratio and can end up affecting you when you go to obtain a loan.