3 Home Buying Mistakes You MUST Avoid
In real estate, making mistakes during the homebuying process can be both emotionally and financially stressful. In this blog, we discuss some of the most typical homebuying mistakes many would-be homeowners make to help you navigate the journey to your dream home with confidence!
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Making Big Purchases
First-time homebuyers should be aware that lenders monitor credit right up until the closing. Yes, a lender will know if you use a credit card for large purchases or if you use all of your cash to pay for expensive items. They see this as a sign of impulse buying; even worse, it could lower your credit score and jeopardize the terms of your mortgage.
In other words, hold off on buying expensive stuff and keep your credit and finances stable until after you’ve closed on your home.
Talking to only one lender
Submitting mortgage applications to several different lenders gives you a better sense of what you can afford. The more you compare options, the more confident you can be that you’re getting the best deal and lowest rates. This way, you can compare the best mortgage products in terms of interest rates, closing costs, and lender fees.
Changing jobs might make it more difficult for a lender to approve your mortgage since they want to make sure you have stable employment and income and can afford to pay back your mortgage.
From the lender’s point of view, your employment history and income are the most important factors in making payments on time and without experiencing financial difficulties. When you change jobs, a lender cannot vouch for your future income based on your current salary. If possible, try to avoid changing jobs until after your loan has closed.