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Do you know what NOT to do while in the middle of the home buying process?

Do you know what NOT to do while in the middle of the home buying process?

 

A simple online search will bring you to lists written by professionals advising on what steps to take to own a home. Often times these lists focus only on the positive and typically will advise to save money, and pay off debt. Did you know that there are things you shouldn’t do as well? Keep these 6 items in mind when you are in the process of closing on a home. When you are in closing, you are in the final stretch, but you should still remain mindful of a few items that could affect your application.

  1. Do NOT forget to make any payments – Continue making all of your payments, especially your mortgage and rent payments.

  2. Do NOT spend your savings – The amount of funds in your savings has been taken into consideration on your application and represents revolving cash in your bank account. Additionally, if there are any charges associated with closing on your home, this money can help finance that.

  3. Do NOT change jobs – Wait till after you have closed on your mortgage before changing careers. A stable employment is a requirement when applying for a home and represents a stable income.

  4. Do NOT close any lines of credit – Open lines of credit represent available credit that banks have approved for you to borrow. They directly affect your debt to income ratio.

  5. Do NOT apply for any lines of credit – Although it may seem like an obvious one, adding another line of credit will directly affect both your credit score and your debt to income.

  6. Do NOT make large purchases – Wait till you have your home before you pull a loan on that new boat or furniture you’ve been wanting. There is nothing worse than losing your financing over purchases that should have waited.

 

Keep your liquid assets as consistent as possible. This general guideline will allow your lender to thoroughly review your application and allow for a smooth pre-qualification process. 

APPLY TODAY to make an appointment with your NOVA® Loan Officer!

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