Buying a house is the most expensive investment that you will make in your entire life. Don’t blow your chances of owning your dream house by committing mistakes. This is the checklist of the things that you should not do when buying a home:
It is very important that you are updated with all your loan payments, including credit cards, car loan, personal loans, etc. The lenders will look at your payment history to verify your credibility as a borrower. If you miss out on your payment several times, it may lead to not getting a loan with good terms.
- Avoid changing jobs
Don’t do job hopping at least two years before you buy a house. One factor that the lenders are looking at before you get approved for a mortgage is a permanent source of income. To demonstrate your financial stability, it is important that you stay with one company. By changing jobs many times, you make the lenders think that you don’t have a steady income to keep up with the mortgage.
- Avoid changing banks
Your bank history plays a big part in a mortgage application. So whether your bank made you upset or another bank is offering you a good deal, you do need to pass it up. Changing banks will not look good on your application process.
- Avoid buying a car.
Don’t buy a car before buying a home. Sometimes, when you are confident that you have enough to buy a property, you are trying to prove yourself too much by buying a car. Unfortunately, buying a car can destroy your plan plans of buying a house completely. Remember that when you apply for a mortgage, the lenders will investigate your credit history. If they find out that you have accumulated too much credit because you are also paying for your car, it might take your chances of getting a loan with good terms.
- Don’t buy furniture or appliances just yet
Your main priority during the initial stage of the home buying process is to get approved for a loan. It is understandable that you will get excited about moving into your new home but buying furniture and appliances doesn’t make any sense. First of all, you don’t know if the fixtures will fit into the rooms of your new house. Second, if you will buy these things on credit, it will affect your chances of getting approved for a mortgage.