Top 3 things not to do before buying a home

Facts to Know When Purchasing a House making your purchase much simpler:

When you know that you're going to be buying a home in the next six months or so, you should place a moratorium on certain things that can inhibit your options. Planning ahead is crucial to buying a home, particularly if you don't have extensive financial resources. Mortgage lenders will be scrutinizing your finances carefully, don't give them any reason to reject your application.


Major Purchases

If you're buying a home, don't invest in any major purchases. Cars, weddings, jewelry, furniture and electronics can all wait until you're settled in your new home. When you make a major purchase, you limit the amount of money available for your down payment, and decrease the amount of liquid capital in your name.

If you do have to make a major purchase before buying a home, you might want to put it on a low-interest credit card until after your mortgage application is approved. Sometimes you can't control what life throws you, but think carefully about your options before making a decision.

Investments

It is also a bad idea to make investments just before buying a home; again, you're decreasing the liquidity of your assets. If you've come across a new stock in which you'd like to invest or if it's a great time to buy bonds, wait until after you've settled the finances on your home.

Furthermore, you'll have to disclose all of your finances before buying a new home, which means accounting for every withdrawal and deposit in all of your accounts. This can get quite tedious, especially if you're trying to dig up cancelled checks for the new sofa and loveseat you just had to have three months ago.

Employment

Before buying a home, try not to change jobs. Your employment is a key factor in the mortgage approval process, and if you can't show steady gainful employment, you might be denied. Of course, you can't help matters if you've just been laid off or an opportunity presents itself that you can't pass up.

If you're going to change jobs before buying a home, wait another six months before going ahead with the real estate transaction. This gives you an opportunity to establish employment and to show a steady income of paychecks from a single employer. This looks much better on a loan application than a long list of recent employers.

Financial Institutions

Changing banks is always a hectic ordeal, so don't do it before buying a home. You'll have to provide information about previous accounts that are now closed, and therefore inaccessible. And if you diversify your money too much in money market accounts, savings accounts, checking accounts and other places, you'll have a harder time with the disclosure process.

If you're fed up with your bank and want to change, tough it out a little longer and switch after your mortgage is approved and you've set up shop in your new house. This will save you hours of headaches and frustration.

As mentioned above, there will be times when you can't avoid all of these things before buying a home, but know that it's in your best interests to wait until the dust settles, so to speak. The goal should be to move into your new house with as few obstacles as possible.

In the 18 years that I has been in the mortgage business, I has successfully closed over 3,000 loans that total in almost $1 billion in production. My goal is to make your mortgage experience as easy as possible. Call me today for programs including 100 financing. 864-451-7894