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Financial Friday: DON’Ts When Buying

Today we discuss some important things NOT TO DO when you are preparing to buy a new home. 

Oftentimes we only focus on the financial Do’s when buyers should really be made aware of the Don’ts. It is important not to change your job before applying for loans. This is not the time to be self employed or search for a new job, it is crucial to show lender stability to banks. In addition to this, don’t change banks or extract large sums of money, this also shows stability. It is also wise to not buy a new car that will need to be financed while applying for loans. This can increase debt along with the loan you receive. Avoid buying things on credit for your new home, it is important to save money for the down payment. Be sure to pay all of your credit card bills on time, don’t make late payments that could jeopardize your chances for a loan.

When filling out your loan applications, it is crucial that you don’t lie under any circumstances. If you do lie about any debts or liabilities, you can be convicted for fraud. It should also be known not to co-sign a loan for anybody, this can also increase your debt-to-income ratio. Don’t spend any money you may need on closing costs, you will be responsible for a large share of him. Lastly, don’t apply for new credit cards or anything that would prompt suspicion about your credit rating. By opening multiple credit accounts at once, it represents some risk for lenders. Your credit could take a hit from many of these things and it is important to be aware of them and how they should be handled .

Here at BridgeView we hope these tips will help you in your transition!

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