Friday, February 7, 2014

The Worst Things You Can Do Before Buying A Home

If you are in the market for a new home, and you anticipate the need for a mortgage, then here are a few things to avoid:

  • DON'T GO CREDIT CRAZY: Lenders will look at your credit when you apply for a loan AND again just before you close on your new home. Avoid financing any new purchases during this time (ie: new car, new refrigerator, new anything) as it can change your debt-to-income ratio and stop your ability to get a mortgage!
  • DON'T SHUFFLE YOUR MONEY AROUND: Lenders look very closely at your bank statements and know exactly how you are funding this transaction. The money you are using to make this purchase is best if it has been in your account for at least 60 days. If you deposit or move around money, you will have to explain and document these transactions.
  • DON'T CO-SIGN ON ANOTHER LOAN: Co-signing on another person's loan makes you fully responsible for that money. This can kill your debt-to-income ratio and thus kill your ability to get a mortgage.
  •  DON'T CHANGE YOUR EMPLOYMENT STATUS: A job loss will surely kill a mortgage! Stability and continuity is very important when a lender is looking over your employment. Even changing employment to a higher-paid job could impede mortgage approval.
The best way to stay on top of all the requirements of a mortgage is to stay in communication with your lender before and during any financial decisions. Ask as many questions as you have and listen to any advise given. Remember, it is the lender's job to guide you through the process and on to a successful closing!!

If you have any questions, please feel free to contact one of our preferred lenders,
David Kanis of Fairway Independent Mortgage.
(828) 210-8773 or 


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