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What to Avoid Before You Purchase a Home

Nov 10

Are you surprised by the many ways things could be wrong when purchasing an apartment in the first place? buyers are frequently shocked in a number of ways. There is a chance that you've already been approved for your mortgage and found the perfect home. It is important to ensure that the transaction closes quickly if you don't wish to cause any damage.

Read on to find out what you shouldn't do when buying a home. These are common mortgage mistakes that can be easily avoided. If you're fortunate enough to have a great mortgage broker or real estate agent, more than likely certain of these factors were already mentioned.

Use the following tips to safeguard your investment in a home and yourself.

Making mistakes is easy even if you've never owned an apartment before. These home-buying mistakes can be avoided to lessen anxiety and keep your life simpler.

1. Don't miss loan payments.

All your loans, which include auto loans and credit cards, must be paid on time. The lender will examine your credit again before finalizing your mortgage. If you have missed any payments, it may cause you to lose the loan.

A lot of buyers think that they will be secured a loan when their lender has made a commitment. It's not the case!

Lenders can cancel a mortgage commitment at any time. Recently, a buyer was purchasing the home I had listed in Centralia IL. The buyer was simultaneously buying and selling the house. The buyer bought the property but was unable to pay the mortgage's last payment.

The problem was that this was noted in their credit report. This stopped the buyer from receiving the loan needed for the purchase.

They had to apply at an entirely new bank, under another program (FHA instead of the traditional one). They were unable to pay thousands of dollars and their purchase was delayed.

2. Be careful before you consolidate your debt.

The idea of consolidating debt can be appealing when you are finally thinking about buying a house. The majority of consolidation deals allow you to consolidate all of your debt under one umbrella payment, which is a good idea for some people.

There are, however, hidden fees and interest rates that can rise dramatically with no warning. Consolidation may not improve your credit in the manner you'd like, so make sure to read all the fine print.

3. Avoid changing jobs.

It's no surprise that changing jobs is not something you should be doing when you are trying to purchase an apartment! One of the things that lenders look closely at is your work history. They want to make sure that you are financially stable and capable of making your loan payments.

You could make yourself less attractive to lenders if you change your occupation prior to applying for your loan. The lender could think you're not stable or have enough money to cover the mortgage. The word stability is something lenders love.

Be sure to keep your move private until the time when the closing takes place.

4. Do not alter your financial situation prior to when applying to get the loan.

The current financial state of your finances is what a lender uses to pre-approve you. At all costs, you must maintain that approved status. Some buyers make the mistake of shifting their money around to get better placed. This is not an ideal strategy.

Don't make any financial changes after you've secured your mortgage. The lender will ask for an explanation if you move money between accounts.

You will need to give an accounting in detail of how you moved your money around. Don't make this error. Keep your money in the same location before closing.

5. Do not open a bank account at a new financial institution.

The bank you dealt with might have left you feeling angry or upset. Perhaps you came across a great deal from a rival bank that you simply cannot ignore. It's not a good idea to pass it up, because changing banks before getting the loan may cause problems for everything.

6. Do not buy a car.

Absolutely, purchasing a car and purchasing a home is a common errors. This is another mistake to avoid prior to purchasing a home. Sometimes the feeling of knowing you're getting a house of your own can be enough to make you want to start thinking about other ways to make your life better - for example, buying cars.

7. Avoid buying furniture or household items on credit.

Another mistake homebuyers make is using credit to begin preparing their new living spaces. While you may be tempted to buy appliances and furniture to make your house fully yours, it's recommended to hold off.

It is not advisable to take on any new debts for furniture or household items. This could negatively impact your credit score and may trigger an alert from the lender. This could cause your loan application to be declined.

Final Recap

It is easy to make a mistake when you are applying for a mortgage especially when you're a first-time homeowner. We hope you found this article useful and that you will not make any financial mistakes.

Are you looking for a realtor Centralia IL who knows the ins and outs of Centralia, Illinois? Look no further than Cindy Quinn! As a realtor in Centralia, Cindy has helped countless buyers and sellers navigate the local market.

 

Cindy Quinn Real Estate Agent

820 E Noleman St, Centralia, IL 62801

(618) 322-6911

[email protected]