8 Mistakes That Could Cost A Buyer Their Dream Home
February 2, 2016
If you are thinking about purchasing a home, odds are you have already done your homework on how to obtain a loan. But what should you do (or NOT do) after you sign a purchase agreement? Here are 8 mistakes that buyers often make that cost their ability to close on their dream home:
1. Applying for a new credit card - Credit card inquiries can negatively impact your credit score.
2. Buying a new car - A new loan can affect your debt-to-income ratio and you might not qualify for your home loan.
3. Buying new furniture or appliances for your home can also affect your debt-to-income ratio. As exciting it is to furnish your new pad, please refrain until the closing documents are signed!
4. Changing jobs - although job changes can provide better pay, it could delay your closing. Most lenders like to see 30-60 days worth of pay stubs from your current employer, switching jobs will reset the clock for closing time.
5. Closing credit accounts - length of credit history often has a positive impact on your credit scores. Lenders like to see proof of your payment history. Prove that you are a responsible customer and are reliable to make your payments.
6. Getting behind on payments - credit is checked the week before closing to make sure buyers still qualify. Be organized and conscience of your conscious of your spending prior to closing.
7. Moving money without a paper trail - lenders need documentation per lending guidelines.
8. Spending their savings - lenders need you to keep a certain amount of money in savings per lending guidelines. Ask your lender what amount should remain in your savings account. After closing, feel free to spend your savings on furnishing your new home!
The bottom line is: If you have questions about the buying process, ask your Realtor who is there to help make your dream of homeownership a reality!