Many of my family and friends are starting to buy their first houses. (Yay for them and the economy!) I’ve been very impressed by their knowledge and resourcefulness in finding answers to their real estate related questions but there’s so much information out there. So…I thought I’d put together a brief list of what NOT to do when buying a house as it relates to a home mortgage.
DON’T open any new credit lines or make any large purchases on existing credit. This includes buying a car or furniture for your new house.
DON’T change jobs.
DON’T co-sign on any other loans or lines of credit.
DON’T negotiate your real estate contract with a contingency to get settlement money and expect to get that cash back at closing. That money can be used to pay closing costs and/or prepaids.
In summary, if you’re on the market to buy a house, don’t change anything in your financial world. Unless of course it’s an increase in compensation! Definitely don’t turn that down.
Making any major changes to your financial picture can change your debt-to-income ratio or your ability to qualify for a mortgage. At the very least, it will also create more work for your lender and may lead to a delay in closing.
If you are just starting to think about purchasing a house, ask your real estate agent for a lender recommendation. They can usually provide a few.
Full Disclosure: Andrea Scalici is a NYS Licensed Real Estate Agent with Keller Williams Realty Syracuse. She can be reached at (315) 701-6917. Or you can check out her website at http://upstatenyhome.kwrealty.com/.