7 Helpful Home-Buyer Tips
Buying a home is a major accomplishment.
However, every home buyer has a different journey.
First-time home buyer tips can prevent a variety of pitfalls.
Don’t Change Jobs After Applying for a Mortgage
Once you have applied for a mortgage loan and received a pre-approval, the time frame to close your loan is typically less than 45 days.
Verifications may have been performed for your current job.
Any changes to your income or job type could delay or disrupt the processing of your mortgage loan.
Even if a new job pays more money, it’s generally a good idea to refrain from changing jobs until you have received the keys to your new home.
Don’t Apply for Additional Credit
Credit inquiries can reduce your credit score by several points.
While a reduction in a few points might not be so bad, opening a new account could change your debt ratio and potentially increase your mortgage interest rate or disqualify you for the loan.
Don’t Make Late Payments
A loan approval should not signal a change in your timely payments.
It’s imperative to maintain your credit status.
Keep paying all of your bills on time.
Don’t Make Unexplained Bank Deposits
Be prepared to explain larger than usual bank deposits.
An underwriter will question undocumented deposits that are out of the ordinary.
For instance, if you are receiving gift funds toward your down payment or closing costs, you should obtain a letter from a relative which indicates that no repayment is expected.
Otherwise, a large deposit might be considered a loan and an underwriter will require documentation for the source of the deposit.
Don’t Close Any Consumer Accounts
Closing long term or established consumer accounts can negatively impact your credit score.
The age of your accounts are calculated in your overall credit score.
While it’s permissible to pay down or to pay off your consumer debts, closing your accounts are not recommended.
Maintain Your Financial Reserves
Purchasing new furniture, a new car or a home theatre could deplete your financial reserves.
Keeping your financial reserves for unforeseen emergencies could provide a cushion for unexpected situations.
Speak With Your Mortgage Broker Before Making Sudden Moves
If you’re feeling like you are on top of the world and about to buy a new home, don’t shop for a new car or a boat, just yet.
Any changes to your overall financial picture could change your loan approval status.
Contact your mortgage broker before adding additional debts or making changes that might impact your financial situation.
Samantha Cooley is a licensed mortgage broker who provides clear insight for home buyers in Arizona, California and Colorado.
Speak with Samantha about refinancing or buying a home today.