What Not to Do Before Buying a Home
1. Don't Buy a New Car
A reduction in your savings or a new car loan, may impact your ability to qualify for a mortgage.
2. Don't Apply for a New Credit Card
This can impact your credit score and look suspicious to mortgage lenders.
3. Don't Change Jobs
A mortgage lender often needs to verify employment and see pay stubs.
4. Don't Move Money Around Without a Paper Trail
Documentation is essential to mortgage lenders as it helps them to ensure you have enough money.
5. Don't Skip or Make a Late Payment
An essential aspect of your credit history is your ability to pay bills on-time and in-full.
6. Don't Close Any Existing Credit Cards
Even though you may want to get rid of any unused credit cards, it can impact your credit score. Wait until your house closes before doing this.
7. Don't Spend Your Savings
You will need this for a down payment and closing costs.
8. Don't Furnish or Buy New Things for Your Home
It is best to wait until your house closes before buying these items.
By ensuring that you stay away from these don'ts, you'll be on your way to buying a new home in no time!