Many home buyers are so concerned with saving enough money for their down payment that they forget about the little missteps which can cause them to miss out on home ownership all together.
First let me say I give all my clients the same mantra. “Don’t buy anything, until you close on your new home, and don’t change jobs until you close.” Most listen, but there have been a few that have derailed their home purchases because they did not listen.
Below are some of the most common mistakes buyers have a tenancy to make which can cause them to lose the home of their dreams. The following missteps can really hurt your home owning chances. Purchasing a car or any other expensive item before closing. Buyers may want to purchase new furniture and appliances for their new home on credit. This is a big no-no, because lenders will do a final credit check before closing, these types of purchasers will show up.
Because some buyers may struggle to secure their down payment for the closing, they will often be tempted to max out their credit cards as they try to save enough money to get into the property.
Here are some of the most common mistakes home buyers should avoid before closing:
- Don’t finance a car or any other big item before buying a home.
- Don’t max out credit card debt.
- Don’t quit your job or change careers before buying.
- Don’t apply for a new loan or lines of credit
I know many of you are thinking duh, yeah, I already know this. But many people make these missteps thinking they are doing what is best to prepare for home ownership. The best advise is to maintain a financial quiet period prior to closing. Your lender can pull your approval if there is any significant change in your financial status.
By R. Jones