These 10 commandments may seem like common sense to some but to others they just don’t know. Many things that future home owners do before their loan is finalized are scrupulously viewed under a microscope, and many buyers have no idea that these things can leave a lasting impact on their future. Take for instance the example couple, everything is heading in the right direction for them and they are soon to purchase the home of their dreams. Like most home buyers do, they get excited and go to the furniture store to purchase a new bedroom and living room set for their new home. They opt into the financing option for their furniture, and then their agent calls them and tells them they can no longer be financed for their loan of their new home! Now they have all of this new furniture and no home to put it in. Most people wouldn’t have thought twice about doing something like that. So if you are thinking about purchasing a home soon, or know someone who is read the following commandments and make sure you do not break any of them!
1. Thou shalt not change jobs, quit your current job, or become self employed.
2. Thou shalt not take a loan out on a car, truck or RV, any automobile loan may hurt your home buying process!
3. Thou shalt not think that they are helping their credit by using large amounts of credit, and whatever you do not ever let your credit accounts fall behind.
4. Thou shalt not spend any of the money that you have set aside for closing costs, you will, I repeat, you will need it.
5. Thou shalt not lie about debt in the loan application, we will find out and it will come out eventually.
6. Thou shalt not buy furniture. Furniture financing is the same as automobile financing though it may be less cost it still is damaging to your home buying chances.
7. Thou shalt not ever, under any circumstance check your credit score!
8. Thou shalt not make large deposits into your bank account without checking with your loan specialist first.
9. Thou shalt not change bank accounts, bank, or move accounts.
10. Thou shalt not co-sign a loan for anyone, even if they beg you!
If you are in the process of purchasing a home, please remember that your credit must not change in any way. Your new home is not yours until you sign the papers on closing day. Until this time everything that you do is taken into consideration. Lenders will not only look into your credit when you first get pre-approved, they will check it again (and sometimes again and again) before they let you sign the closing paper on your new home. If you want to buy new furniture for your home or change jobs, just be patient. There will always be time to do it after the closing.
If you have any questions about purchasing a home please contact one of our specialist in our office or view our website for more information.