As experienced Dallas real estate agents, we know that buying a home is an exciting and much-anticipated time in your life. You get loan pre-approval, perhaps even get under contract; already, you’re landscaping, updating the kitchen, living those dreams in your head. Before you go overboard, remember that loan pre-approval is not a guarantee that the sale will go through.
Here are a few things buyers should avoid between contract and closing day in order to seal the deal.
Avoid late payments. When waiting to close on a home, make sure you pay your bills on time – particularly the mortgage or rent payment. Even one late payment can substantially impact your credit score, so be sure to pay all of your bills on time for a minimum of 12 consecutive months before attempting to qualify for a home loan.
Losing or changing your job. Even if you shift positions within the same company, it can be significant. For instance, going from a salaried position to one that is commissioned can make lenders re-think their decision. You certainly don’t want to make a switch to a career in an entirely different industry. Best just to stay put if possible, as job hopping or losing a job can bring your dream to a screeching halt.
Becoming liable for another person’s loan. Co-signing is sometimes a risky financial move even when you’re not trying to buy a home. Essentially, when you co-sign for someone else, you are becoming financially responsible for that person’s debt. This could upset the apple cart with lenders in terms of your assets and debt-to-income ratio.
Don’t go on a wild shopping spree. Sure you want new furniture for the living room and dining room, perhaps even new window or floor treatments – but don’t go credit-crazy until the loan has closed! Again, any new payments, whether for furniture, new appliances, or a new car will negatively impact your debt-to-income ratio. Save the purchases for after your loan has closed.
At Team Nelson, we want to help ensure your dream of buying a home comes true! If you are looking into buying a home in North Texas, give our realtors a call today.