Four Things You Must Never do when Purchasing a Home:
- Quit your job or become self-employed. Lenders need two years’ worth of employment history to give you a pre-approval for your home loan.
- Create more debt or make any purchases that affect your debt-to-income ratio. This means don’t buy a new car, use your credit card excessively, or sign up for a new timeshare or any other loan that could harm your home purchase. Lenders look at your debt-to-income ratio to determine how much you can afford. The more debt you have, the less purchasing power you’ll have.
- Spend money you have set aside for closing costs before closing on the home. Closing costs typically account for about 2% of the overall purchase price. Make sure you have this money set aside. If you don’t, let your broker know.
- Make any large deposits into your bank account before speaking with a lender. Any large deposits will need to be explained.
If you have any more questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you.