Points keep in knowledge before buying a house:
Existing loan payments:You must keep your payments current on all your loan accounts, including credit cards and car loans. The lender will look at your credit again before finalizing your mortgage, and if you have missed any payments, it may lead to you losing the loan.
Be careful before you consolidate your debt:Debt consolidation can be tempting when you finally start looking at buying a home. Most consolidation offers make it possible for you to bring all your debt under one umbrella payment, which makes sense for some people.But there are also often hidden fees and interest rates that can increase dramatically without warning. Consolidation may not improve your credit in the way you expect, so be sure to read all the fine print.
Avoid changing jobs:It goes without saying that changing jobs is not something you should do in the middle of purchasing a home! One of the things lenders look closely at is your employment history. They want to be sure that you are financially stable and capable of making your loan payments.By changing a job before you get your loan, you make yourself less appealing to the lender. Changing situations may cause the lender think you are unstable, or that you won’t have a steady income to keep up with the mortgage. The word stability is something lenders love.Keep your move under wraps until after the closing takes place.
Avoid shift your finances around before getting the loan:the approval is based on the current status of your finances. You want to maintain that statusand wait to make any financial changes until after you have gotten your mortgage. If a lender sees you moving money around various accounts, they will ask for an explanation.You will need to give them a detailed accounting of why you moved your money around. Avoid making this mistake and keep your money in one place before closing.Sometimes buyers make the mistake of shifting their money around to better position themselves, but this is a mistake.
Avoid start banking at a new institution:Changing banks before getting your loan can disrupt everything.Your banking history and status is part of the equation that leads to you getting pre-approved. Change your bank, and you may not get final approval.
Avoid buying a car: purchasing a car can throw a struggle into your home buying plans. Your loan pre-approval was based on the state of your credit and your debt load at the time of pre-approval before you bought a car. Adding the debt that the car purchases will bring may make you unable to get the loan for your home.
Avoid buy furniture or household goods on credit:You may want to start buying furniture and appliances to fill up your new home and make it truly yours, but hold back.Taking on new debt, even for furniture or other household related items will change the status of your credit and may throw up a flag for the lender that leads to the loss of your loan approval.
Avoid making large deposits into your bank account or making cash deposits:Money that appears suddenly in your bank account makes lenders uneasy. In fact, they prefer for you to have the money that is going to your down payment in the same account for at least 6 months.Lenders consider it a demonstration of stability and your ability to cover the loan payments. Whenever you make a significant deposit or start doing unusual or unexpected things with your finances before the home purchase, the lender may begin to scrutinize the loan and might back out.
Avoid lying or stretching the truth on your loan inquiry:You may have no intention of lying about your finances when you fill out a loan application, but the point needs to be stated regardless. Lying on a loan application is fraud, and if the lender finds out that you mislead in any way, you will almost certainly lose your loan.
Don’t let anyone make inquiries into your credit:Any time you apply for a credit card, a loan or even try to sign up for a new service and they do this to determine if you are a safe risk.But when the mortgage company sees that inquiries are being made, it may assume you are trying to take out more debt – even if you aren’t. While one or two queries may not be enough to lose your home loan, there is no reason to take unnecessary risks when you are so close to getting your home.
Avoid being a co-signer for anyone:When you co-sign a loan, you are obligating yourself financially. It does not matter that you are not the primary person on the loan. If the lender needs money and is unable to get it anywhere else, it will come looking for you to pay.Home lenders are well aware of this fact and are therefore disapproving of any applicant that decides to co-sign. try to postpone co-signing until you have the money for your home purchase.
