The days of simply walking into a bank and telling the loan officer you have good credit with steady income and walking out with the keys to your new home are long gone.
Buying a home is probably one of the biggest purchases most people will make and unfortunately it’s not just as easy as the sign and drive event your local car dealer.
But don’t get discouraged. Buying a home not only takes research and patience, it also takes a few tips and tricks to make the process seamless.
Now we can’t take credit for this commandments, a wonderful realtor by the name of Tish Thompson came up with these to help her clients better understand the process; we just tweaked them a bit.
Below are the 10 Home Buying Command ments.
1. Thou shalt not change jobs, become self-employed or quit your job.
Change reflects instability. Instability makes underwriters twitchy.
2. Thou shalt not buy a car, truck or van.
Changing your debt to income ratio before the loan goes through is a no no.
3. Thou shalt not use credit cards excessively or miss payments.
Once pre-approved, spend and do nothing except window shop.
4. Thou shalt not spend money you have set aside for closing.
Money for down payment is a large variable in the home buying process
5. Thou shalt not omit debts or liabilities from your loan application.
They will look for it. They will find it. They will deny you.
6. Thou shalt not buy furniture.
Wait until you actually get the house. Any cash or credit used could affect the loan.
7. Thou shalt not originate any inquiries into your credit.
They ding your credit just a hair sometimes. Better safe than sorry
8. Thou shalt not make large deposits without talking to your loan officer.
Monies over 25% of your monthly income cause red flags and require written explanation.
9. Thou shalt not change bank accounts.
Whether it is your personal account or the banks with whom you started the loan process, either one could set you back to the beginning of the process
10. Thou shalt not co-sign a loan for anyone.
Remember that whole debt to income ratio thing? If you can’t buy a car for yourself, you definitely can’t help someone else buy a car.
These 10 tips will save you hours of headaches and heartbreaks. If you looking to buy a new home (we know a few good realtors) or looking to refinance, it is best to avoid making any unnecessary fiscal transactions until the deal is actually done. Once you have that new house call us to get a low homeowners insurance policy without any of the gaps in coverage!