If you’re thinking about buying a home read this article first. It will save you time and money
By Jason Boone
You’ve worked hard towards buying your first home and have done your due diligence including choosing a lender and a local Real Estate Agent to work with.
After connecting with the right people to work with you’ve also found your dream home and the next step is for you to wait for your Realtor to negotiate the very best deal for your family and you can sit back and wait for your home loan to close right?
Qualifying for a home loan in 2014 has been described as an interactive process because, getting pre-qualified for a home loan is only the first part of buying a home and there are many more do’s and don’ts along the way which could lead to the success of closing fast or you losing your mortgage loan altogether.
What You Should Be Doing
Be available – If your loan offer contacts you with requests for documentation make sure you respond to those requests as soon as possible.
Make decisions quickly – In the Real Estate world you can’t wait days, reviewing the pro’s and cons to make a decision on something which could affect your ability to buy a home. You have to be able to make decisions quickly and have answers for your lender and Realtor or you could be searching for a home longer than you expected.
Don’t be afraid to speak up – As a home buyer one of the most important things you can do is ask questions if you have them or speak up if you have concerns during the home buying process because it’s the job of both your Realtor and lender to answer those questions and provide great service.
Keep paying your rent or mortgage – Even though it may look like you’re close to buying a home don’t stop paying your mortgage or rent because neglecting to make your regular payments could hurt your credit score and cost you a place to live if you haven’t bought a home yet.
Continue staying current with all of your bills – Just because you’re pre-qualified for a mortgage that doesn’t mean you should stop paying your bills. Make sure you keep all of your bills current because, neglecting to pay even one bill could also hurt your credit score and you can lose your pre-approval.
Don’t take time off from work – When you are buying a home everything you do will be under scrutiny by your lender including your work history. This means you should not take time off from work because you want to continue to appear a stable and financially able candidate for a mortgage loan.
Use your credit normally – It doesn’t matter how many credit cards you have, make sure you continue using them normally because using your credit during the home buying process can change your credit score if you make big purchases with credit.
Document large deposits – If your job, business or a relative is giving you a lump sum of money make sure you’re prepared to document large deposits because a large transaction of money could be cause for concern from your lender and must be explained.
Enjoy the process – Although buying a home may seem like a big deal, and even impossible at times, it’s really easier than you think. Enjoy the process, stay objective and use your head because, small financial decisions which you make today could affect you tomorrow.
What Not To Do When Buying a Home
Don’t make major purchases – If you plan on buying a new car, furniture, jewelry or appliances during the home buying process hold off until you’ve actually purchased your home because big purchases will need to be explained to your lender.
Pre-approved for more credit? – Let’s say you received an offer from American Express in the mail which shows you’ve been pre-approved for a new card. Don’t use this card until after you’ve purchased a home, even if the offer says “90 days same as cash”.
Don’t pay off any collections or charge offs – You may think paying off debt is a good idea but if you’re buying a home make sure you ask your mortgage lender first.
Don’t make any changes or alterations to your credit profile – Regardless if your name is spelled wrong on your Experian credit profile make sure you consult with your lender first before making changes to a credit profile.
Don’t open new bank accounts or change banks – Again financial stability is important when buying a home so don’t open new bank accounts or change to another bank because, these types of moves will only make you look less financially stable.
Don’t move money around! – Last of all, but most important, during the process of buying a home make sure you keep your money in one place and don’t move money between accounts because this only will arouse the suspicion of lenders and possibly cost you your mortgage loan pre-approval.
To learn more tips on what you should and should not be doing when buying a home or to view homes for sale in Bend Oregon contact me, Jason Boone, Principal Broker with Principal Broker at Duke Warner Realty | Skjersaa Group by calling me at (541) 383-1426 or by emailing me at Jason@sgbend.com.