If you are thinking about buying a property within the next year, there are certain things that you should avoid doing as they may limit your ability to get a mortgage. Below are 5 mistakes to avoid before buying homes in St Augustine FL.
5 Mistakes To Avoid Before Buying A Property In St Augustine FL
Major Purchases
Lenders evaluate the percentage of your debt to your overall income. Making large purchases either on your credit cards or with new loans may significantly shift that percentage. In general, the higher your debt, the less you will qualify for on a mortgage. This is especially important after you have found a home and have started the mortgage process. Lenders may re-check your credit report immediately before final approval to confirm that things have not changed. If you obtained new debts, this can result in you not being able to buy the property.
Moving Employment
As part of the mortgage process, lenders look at your past and current earnings to analyze your ability to make payments. A solid history in earnings is very important. Shifting jobs before or during the mortgage process can cause difficulties with qualifying for a mortgage, especially if the new job is in a separate line of work or at a lower salary. During the mortgage process, it may also create delays while the new employment is verified.
Switching Banks
Loan processors typically evaluate your bank account history over the last several months. Moving your funds to a new bank can cause problems. It is best to leave funds in the same location until the closing completes.
Cash Transactions
Most types of loans require that you use a specific percentage of your own funds for the down payment or closing fees. Mortgage companies confirm this by reviewing bank statements. Any cash deposits are closely scrutinized. You may be asked to verify the source of cash deposits.
Closing Accounts
While preparing to purchase a property in St. Augustine, FL, you may try to pay off credit cards. Before starting this, consider speaking with a mortgage professional on whether it is needed given your financial situation. If you do pay off bills, do not close the accounts as this will affect your credit rating. It is better to leave the accounts up with no balance.
Additional Advice on 5 Mistakes To Avoid Before Buying A Property In St Augustine FL
The above 5 mistakes to avoid before buying homes in St Augustine FL covers only the most common mistakes examples. A local real estate agent can assist you in helping to make sure you steer clear of these an many other obstacles. Visit http://StJohnsRealtors.com to find a St. Augustine REALTOR.
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