7 Things NOT To Do When Buying A Home🏡

1. Don’t change jobs.

Lenders evaluate income stability and prefer 2+ yrs employment history. Wait until after closing your home loan to consider any job changes.

2. Avoid large credit purchases or maxing out credit cards.

New debt could jeopardize your loan approval. Large credit purchases such as a car or furniture could impact credit score, credit utilization ratio, and debt-to-income ratio.

3. Avoid co-signing a loan for others.

This increases your debt-to-income ratio and reduces available credit, which lenders see as financial instability. If the primary borrower is late on payments, your credit score will be impacted. You are legally responsible for repaying the debt if the loan defaults.

4. Avoid late bill payments.

A history of late payments can lower your credit score, making it difficult to qualify for a loan. Late fees and penalties can add to financial strain. Timely payments protect healthy credit score and demonstrate financial responsibility and stability, which increases chances of loan approval.

5. Don’t open new credit cards.

A new credit card application triggers a hard inquiry for your credit report, which temporarily lowers your credit score.

6. Don’t switch banks.

Switching banks which may involve closing old accounts will shorten credit history.

7. Not getting pre-approved.

A pre-approval provides a clear understanding of what you can borrow, allowing you to set realistic expectations and eliminates disappointment of finding a home you love but can’t afford. It also demonstrates to sellers that you’re a serious buyer, making your offers more credible and competitive.