Purchase a Home
10 Tips for Home Buyers
When shopping for a new home, there are many things that can derail your loan approval. To ensure the process goes smoothly, here are 10 tips on what you should and shouldn’t do during the loan process.
- Don’t change jobs or leave your job to become self-employed. Lenders will verify employment within 24 hours of closing.
- Continue saving for your down payment and closing costs; you don’t want to be unprepared when you find your dream property.
- Don’t change banks or make any large deposits into your account.
- Avoid large purchases like vehicles or furniture for your new house. Try not to purchase anything until long after closing.
- Mind your credit report. Confirm that the information is correct and that any recent inquiries were authorized by you.
- Don’t co-sign for anyone or otherwise cause new inquiries on your credit report.
- Make sure you don’t incur further debt and that you keep up with your payments.
- Keep your financial records in good order and be honest with your mortgage lender when getting pre-approved.
- Don’t apply for new credit of any kind or transfer balances. Additionally, don’t close any credit card accounts, even those with zero balances.
- Ensure that your lender is kept up to date on any changes that could affect income.
Following these tips can prevent actions that could dramatically alter your credit score or debt-to-income ratios, and even block your chance of closing on your home purchase.