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What to Avoid Before You Purchase a Home

Nov 10

Many homebuyers who are first-time buyers are surprised by the numerous ways that you could go wrong with a home purchase. There is a chance that you have already been approved for your mortgage and found the perfect home. But if you want to avoid messing up the deal, you'll have to be very careful until the transaction is closed.

Keep reading as I discuss what not to do prior to purchasing an investment property. A lot of these issues are mortgage blunders that can be easily avoided. These issues are more likely to be highlighted when you have a good mortgage agent or broker.

Utilize the tips below to protect yourself and your home purchase

Making mistakes is not difficult in the event that you've never purchased an apartment before. Make sure you avoid these home-buying mistakes to take the stress out of your life!

1. Don't miss loan payments.

All your loans, which include credit cards and auto loans are due on time. The lender will review your credit before approving your mortgage. If you've fallen behind on any payments, it may lead to you losing the loan.

Many buyers believe that they will be assured a loan after their lender has made a commitment. But this isn't the case!

Lenders are able to revoke a mortgage commitment and may do so when they see fit. Recently, the buyer purchased a home I listed in Centralia IL. The buyer was selling and purchasing a house simultaneously. The buyer bought the existing house but failed to pay off the mortgage.

This was reported on the credit report of the buyer, which prevented them from getting a loan to finance the purchase.

They needed to be able to get a loan from a bank that has another program (FHA rather than conventional). They were charged hundreds of dollars, and their purchase was delayed.

2. Be careful before you consolidate your debt.

If you're looking to buy a house the idea of debt consolidation might be appealing. The majority of consolidation deals allow you to bring all your debt under one umbrella payment, which makes sense for some.

There are, however, hidden charges and interest rates that can rise dramatically with no prior notice. Consolidation could not improve your credit the way you'd like, so make sure to read all the fine print.

3. Avoid changing jobs.

It is best not to switch jobs between or between purchasing a house. Your work record is one of the most important factors lenders will scrutinize. They want to make sure that you're financially stable and able to make loan payments.

If you change jobs before you receive your loan, you make yourself less appealing to lenders. The lender could think you are unstable or don't have enough income to repay the mortgage. They like stability.

Keep your move under wraps until the time when the closing has occurred.

4. Do not alter your financial situation before applying to get a loan.

If a lender has pre-approved you, the approval is dependent on the current situation of your finances. If you can, you should keep the pre-approved state. Sometimes buyers make the mistake of shifting their money around in order to better be in a better position however, this is not a good idea.

Do not make any financial changes until after you've secured your mortgage. The lender may ask for an explanation in the event that you transfer funds between accounts.

You'll have to give them a detailed accounting of why you moved your funds around. Avoid this mistake. Keep your money in the same spot prior to closing.

5. Do not open a bank account at a brand-new institution.

The bank you dealt with may have made you angry or upset. Maybe you received a better offer from a different lender. It's not a good idea to take it up because changing banks before getting your loan can disrupt everything.

6. Do not buy an automobile.

Absolutely, buying a car in addition to purchasing a home is a frequent mistake. It's also on the top of the list of what you shouldn't do before buying the home of your dreams. The excitement of having an apartment can have you searching for ways to enhance your quality of living, for instance, by buying a car.

7. Credit isn't a great choice for household and furniture products.

A common mistake that homebuyers make is to take advantage of credit cards to begin preparing for their new living spaces. You might want to start purchasing furniture and appliances to fill up your new home to make it your own but be careful.

It is not advisable to take on any new loans for furniture or household items. This will impact your credit score and may trigger being flagged by the lender, which could cause your loan application to be refused.

Final Recap

It is not difficult to make a mistake when you are applying for a mortgage, especially if you're a new homeowner. We hope that you find this info useful and you won't commit any financial mistakes.

Are you looking for a realtor Centralia IL who knows the ins and outs of Centralia, Illinois? Look no further than Cindy Quinn! As a realtor in Centralia, Cindy has helped countless buyers and sellers navigate the local market.


Cindy Quinn Real Estate Agent

820 E Noleman St, Centralia, IL 62801

(618) 322-6911

[email protected]