Once you’re under contract for a home, there are three mistakes you must avoid as a homebuyer.
When you buy a property, your mortgage company has to pre-qualify you for financing, which means at the beginning of the transaction they’ll check your credit and employment to ensure you can afford your mortgage payments. What most people don’t know, though, is that they do the same thing again shortly before the deal closes—they’ll run your credit and call your employer.
This means from the beginning of the transaction all the way to closing, there are three major mistakes you need to avoid so as not to jeopardize your home buying position:
1. Quitting your job. Quitting your job, or changing jobs, will create a huge problem.
2. Making any major purchases using financing. Don’t buy a new car or any new furniture, because getting new loans will reduce your credit score and add extra expenses that might prevent you from qualifying for financing.
3. Applying for new credit cards or close current credit cards. This is another thing that will reduce your credit score and possibly prevent you from qualifying for financing.
If you have any questions about this or any other aspect of the home buying process, don’t hesitate to reach out to me. I’d be happy to help you.