Selling a home? Get a free home value report
Buying a home? Search all homes for sale
Let’s say you’ve found the house of your dreams, you’ve got it under contract, and in 30 days, you’ll be handed the keys.
First of all, congratulations! That being said, if you don’t want to jeopardize your plans of becoming a homeowner, here are five common buyer mistakes you need to avoid making:
1. Quitting your job. Now is definitely not the time to quit your job or get fired. Before closing, your lender will call your employer to verify your employment status. If you don’t have a job, you might be denied financing.
2. Buying a new car. If you’ve been waiting for an opportunity to buy your dream car, don’t do it before settlement—wait until afterward. If you lease a car or use financing to buy one during this time, your debt-to-income ratio will change, and you might not qualify to purchase the home anymore. This leads me to my next mistake to avoid...
3. Creating any new credit card debt. Don’t book any expensive vacations or make any large purchases. Again, this type of thing can wait until after settlement.
4. Buying new appliances. This falls under the umbrella of creating new credit card debt, but it still warrants its own point because it happens so often. I understand you might be excited at the prospect of buying new appliances or furniture for your home, but using your credit card to make these purchases is another thing that will disrupt your debt-to-income ratio and prevent you from qualifying for your mortgage.
5. Borrowing from your down payment sum. If you agree to put down, say, $30,000 for your home purchase, it needs to be that amount exactly—not anything less.
As hard as it is to believe, I’ve seen people make all five of these mistakes during the home buying process, so keep them in mind and make sure nothing gets in the way of you closing on your dream home.
As always, if you have any questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you.
