7 Home Buying Tips
You’ve found your dream home, survived the stressful negotiations and home inspection and now you can go shopping for your new furniture to fill your new home. Wrong!
Your pre-approval is based on many factors including your credit score, current debts and income to name a few. Approval of your loan is contingent of your financial profile during the underwriting process to the closing. Any changes in your financial profile could adversely affect you from receiving your bank commitment letter. This letter is issued from the bank stating that they will issue you the loan.
Do Not apply for any new credit, even if there is a 20% discount offered. This can affect your credit score.
Do pay all your bills on time. Just one 30-day late payment on your credit card or other loan can cause concern for the lender, nixing your mortgage qualification.
Do Not make any large deposits in your bank account.
Do keep all your personal documents that the lender requests organized and together. Items such as payment stubs and payment statements.
Do Not change jobs or become self-employed. Your initial pre-approval was based on your current job history and income, even if it is a promotion to a higher paying job.
Do Not acquire any non-sufficient overdrafts fees from your bank. Your lender will see these as your inability to manage your finances.
Do pay off your debt. This can positively affect your debt-to-income ratio.
This is the time to focus on what is at hand. Close on your mortgage first and then go shopping right away!