Buying a New House? Here’s What NOT to Do
Are you getting ready to buy a new house? Do you want things to go as smoothly as possible? Here are some important things that you SHOULDN’T do if you want to get your dream house with as few hiccups as possible:
Even if you fall in love with the first house you see, make an effort to check out as many homes for sale in the area as possible. Who knows, there might be an even more amazing home just around the corner!
Don’t Dismiss Property for Cosmetic Reasons
Don’t say know to that amazing house that’s much bigger than you thought you could afford just because it has ugly carpets or the wrong kind of windows for your taste. Making cosmetic changes is easy, finding a great house isn’t.
Don’t Quit Your Job
If you’re getting ready to buy a new home, then you absolutely should put off any major life decisions, specifically quitting or changing your job. This is especially important if you haven’t yet submitted a loan inquiry form. You see, if you want to be approved for a loan, you need to show the lender that you are a stable person who won’t default and making a major life change right before applying will not convey that at all.
Don’t Go wild with Credit
Just as important as not quitting your job is not making any major purchases on finance, like buying a new car, for example. When you’re looking to get approved for a home loan, your debt-to-income ratio needs to be as low as possible and spending big could be enough to ruin your chances of getting a mortgage. Sit tight and make any essential credit purchases AFTER you’ve bought that wonderful new home.
Don’t Get Behind with Bills
Again, getting behind on your household bills or failing to make credit card payments on time could affect your ability to get a home loan and lower your credit score, which means you’ll have to do a lot of work before you’re I a good position to buy a house. That is the last thing you want when you’ve found your dream home, so be careful and keep on top of those bills.
A lot of people are tempted to lie a little when applying for a home loan. They might ‘forget’ to mention some of their debts or make it seem like they earn more than they really do. This is not something that any sensible homeowner to be would risk because, not only is it unethical, but it’s fraud pure and simple!
Don’t Go into Detail About Your Budget
Once your home loan has been approved and you’re ready to start seriously looking for the perfect new home, you might think that telling your realtor how much you have to spend could help to speed up the process. However, this is a really bad idea because your realtor might take that as a signal to only show you houses strictly within your budget, whereas you might be willing to find the extra for a really great house, or some sellers might be willing to negotiate a better price. It’s better to keep things vague and thus keep your options open.
Good luck. I hope you find the house of your dreams!