Buying a new home can be an expensive and stressful process, so you don’t want to make it any more difficult by spending extra money that you don’t need to. It is important to be frugal and save money where you can, but a lot of people don’t know where to start. Here are six things you shouldn’t do financially when buying a new home.
Don’t Changes Jobs
If you’re in between jobs or considering leaving your current job, think twice. Lenders might not be favorable toward you if you have recently changed jobs or are looking for new employment. You want to show the lenders that you have a stable, not sporadic, income.
Don’t Miss Bill Payments
Don’t be late on any other payments that can affect your credit. You want to appear responsible to lenders and paying your current bills is the first step.
Don’t Make Large Purchases
Sure, you want to have furniture to fill your new home; however, you should try to refrain to making large purchases until you have obtained your loan. Large purchases increase your debt to income ration and you want all of the odds in your favor when applying for a loan.
Don’t Change Banks
Changing banks before you apply for a loan can create more paperwork while applying for a loan. It can also be portrayed as unstable, and when applying for a loan you want to appear as stable as possible.
Don’t Lie On Your Applications
Make sure to complete your loan application with 100% accurate information. It sounds like a simple thing to do, but if you leave anything out it is considered fraud.
Don’t Apply For a New Credit Card
Even if you have a great credit score, applying for a new credit card will show a possible lender that you are unstable and they will be forced to question whether or not to approve your loan. If it is absolutely necessary to apply for another credit card, wait until after you are approved.
Buying a home can be an expensive and stressful process for any given person, so you don’t want to make it any more difficult. Be prepared and don’t make little mistakes that can ultimately hurt you in the long run. Buying a new home is exciting and rewarding, and you don’t want it to be spoiled by any setbacks.