Buying a new home can hinge on the alignment of a few key things: finding the right property that you can afford, working with a reputable real estate agent and lender, and securing the financing to pay for that new home.
Most homebuyers will successfully navigate the homebuying journey, only to make critical missteps prior to closing the deal that can undoubtedly jeopardize their dreams of homeownership.
Here are a few dos and don’ts to remember when buying your new home.
DO stay current on all your existing accounts including any credit cards, car payments, student loans, etc. Your credit score is a big factor in qualifying for a home loan. If you max out your credit card or fall behind on payments, you run the risk of not being approved for a mortgage. Be sure to make your payments on time.
DON’T make major new purchases on credit. Purchasing a new home is exciting and you may be anxious to buy new items such as furniture and appliances. However, making large purchases before you receive the keys could delay the homebuying process. Instead, create a gift registry for your housewarming party and once you close on your home and move in, then you can start shopping!
DO check your credit report. You may be surprised to know that there are often errors on your credit report that can negatively impact your credit score. This includes unsolicited credit inquiries from various companies wanting to make you offers on things like credit cards. You can always view your report for free.
DON’T buy a home without first comparing it to other listings in the area. We’ve all heard about love at first sight and that is certainly true for homes, especially with the current housing market. But before you purchase the first home you see, be sure to compare it to other listings in the area so you don’t overpay or miss out on another great home.
DO keep working for your current employer. It is no secret that the job market is red hot right now. But if you want to purchase a new home soon, you should avoid changing jobs. A sudden job change may raise red flags and could delay the homebuying process.
Don’t guess how much you can afford. Rather than guessing how much of a mortgage payment you can comfortably afford, you should use a mortgage calculator. This tool can help you leverage your income as well as outstanding debt to give you an idea of what you can realistically afford without breaking the bank. You can also get pre-approved* for a loan before you begin looking for your dream home.
Bottom line, the time between submitting the loan application and closing should be a time during which you should make no major changes to employment, residence, and your debt. If you have questions about this, be sure to contact an Axia Mortgage Specialist today!
*Pre-approval is not a commitment to lend.
Equal Housing Opportunity. Axia Home Loans is a registered tradename of Axia Financial, LLC. NMLS 27830.