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What NOT to Do Before You Buy a Home!

June 21, 2016

You know how it goes… you find your perfect home. You get excited with the idea of you and your family living in your new home. You look forward to the day when you seal the deal and start packing. However, no matter how excited you may be, there are still some things to keep in mind before you buy your new home to avoid mistakes and problems along the way. Remember, buying a new home is a huge deal and big financial step. You need to be careful and protect yourself and your future investment!

To help you prepare for your home buying experience, here are some things you should avoid doing and keep in mind before buying a new home:

  • Having no paper trails on your purchases and deposits. They all seem like a usual purchases to you, but banks will need to be presented with current financial statements when looking to finance your purchase. So, whenever you make a large purchase, or a large deposit (think anything over $300 to be safe) always have receipts and statements on hand to present later on if requested. A lack of sourcing funds is what bogs many deals down and creates delays.
  • Adding to your debt. A new car may look good with a new home but buying a car before you buy your home is not the best move. Any additional debt will not look good to your lenders and will reduce your chances of getting approved for a higher loan amount for your home mortgage.
  • Skipping or delaying a payment. Late and missed payments will affect your overall credit score and create worry in the minds of lending underwriters who are looking at you as an investment. Keep track of due dates and stick to them! Take care of your credit score so you can have a fast and comfortable loan process and pre-approval.
  • Spending your cash on unnecessary expenses. Ever wanting to travel to another country or buying new furniture for your future home? Delay these purchases before buying a new home. You need to save up some cash for closing costs, down payments, and lets face it — a buffer for any unforeseen, and unexpected expenses that may come with home ownership.
  • Changing jobs. Even if you plan to live in a different city, resigning from your new job is just a BAD IDEA! Lenders will need to see a certain period of time on a job before they will approve you as a good investment. Changing jobs mid transaction is a surefire way to ruin or seriously delay your loan and home purchase. Stick to your job before and during the home purchase. You can change your job later on if a better opportunity presents itself.

Chris George Homes
Oklahoma City Realtor
Let’s get in touch: 405.843.8188

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