5 Things You Shouldn't Do Before Buying A House

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As a real estate professional, I get asked this question a lot. It is good information to know before buying a house and something you have to remember while on the process of purchasing one. The last thing you want to do is jeopardize the purchase of your new home when it could've easily been prevented. 


Here are the top 5 answers I give my clients when asked what they shouldn't do before buying a house:

Don't miss loan payment.


Missed payments will affect your credit score negatively. Good credit score is one of the many factors required by lenders in order to loan you money. They also want to know that you can pay your commitments and pay them on time. 

Don't buy a new car.


It's not about the car, it's about your auto loan monthly payments. You could have a $20,000 car with a monthly payment of $500. That's $500 a month that is added to your liabilities that could affect your purchasing power. You want to keep your debt-to-income ratio low if you want to own your home sooner. Once you close escrow, you can go crazy. You can, but you shouldn't cause now you have a mortgage payment to make. 

Avoid changing jobs.

Changing jobs could affect your loan approval. Lenders want to lend money to people with predictable income. Employment history and income are key considerations to your loan approval. Changing jobs may make you seem like a greater risk.


Don't Shift Finances Around

Making unusual large deposits and withdrawals between different accounts may raise a red flag for the banks. Underwriters would need to establish where those money came from thus, creating unnecessary paper work that you and the lender will have to do. A quick phone call to your lender and he or she can advise you accordingly.

Don't be a cosigner for anyone.


Cosigning for a loan, such as student loan or car loan, could affect your ability to qualify for a home loan. Why? When cosigning for a loan, you share full responsibility for said loan. If that person missed a payment/payments, it will show up on your credit history.


Yes, this answer addressed the financial aspect of the home buying process more. That's because without the loan, there is no house, unless of course you have cash lying around. So if you're a home buyer looking to purchase your home with a loan, then this is definitely for you. 


Note:

If you or someone you know is looking to own, sell or invest in real estate in Canyon Lake - Menifee area and the surrounding cities, I'd love to help! 


Angela Carpio, Realtor

6192285034

AngelaCarpioRealtor@gmail.com

http://www.angelacarpiorealtor.com/

#angelacarpiorealtor

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