Four Things to Avoid While in the Process of Buying a Home

Four Things to Avoid When in the Process of Buying a Home
*  Do not change or quit your job.  This will at a minimum cause you to have to submit a completely new loan application and set your closing date back.  At worst this will prevent you from being able to obtain financing to purchase the home.*  Do not make any large purchases on credit or otherwise.  Making large purchases on credit will affect your debt to income ratio adversely and could cause you to lose your pre-approval.  Making large purchases with cash can deplete your assets which you have saved for down payment or reserves.*  Do not apply for any additional credit.  There is nothing wrong with shopping around for a mortgage, but once you settle on a lender don’t go out and apply with another one or apply for anything else that requires your credit to be checked.  Generally speaking if your giving a company your name, date of birth, address and social security number, they are going to run your credit.  Be careful of this and make sure to make it clear that you do not want a “hard inquiry” on your credit report.

* Do not “Co-Sign” for a loan.  Most of the time when you co-sign a loan for someone, it is treated exactly the same as obtaining a loan for yourself.  To be more clear, if your co-signing for a car loan for your sister, the mortgage company will treat it the same as if you were buying the car for yourself.  This will adversely affect your debt to income ratio.

*  Do continue to make all of your regularly scheduled debt payments on time.  Missing a rent payment or credit card payment during the home buying process will almost surely disqualify you from obtaining your new home.

To learn more about buying a home visit our Facebook page at Facebook.com/eaglehomeloans or call us at 931-896-2903. We serve the Nashville, Clarksville and Fort Campbell communities and specialize in VA Loans for first time home buyers.