6 Things Not To Do Before Buying a Home

6 Things NOT To Do Before Buying A Home

1. Do NOT Apply For A Credit Card
Remember that when you apply for a new credit card it can be BAD and look extremely poor on your credit rating. When you open a new credit line, it shows up as a hard inquiry on your credit report and this is a real troublemaker when it comes to getting a loan when you are trying to buy a home. WAIT UNTIL AFTER CLOSING!!!!

2. Do NOT Buy A New Car
It's no secret that your credit score and finances influence whether you get approved for a mortgage or not. When you go to purchase a new car, you're essentially taking out an auto loan whether you realize it or not. That takes a hit on your credit score big time, which you may not realize will be the deciding factor. Realistically, unless you'd like to live in a new car instead of your dream home, I'd wait on buying a car. 

3. Do NOT Switch Jobs
Lenders want to know that you'll be able to make your mortgage payments on any house you purchase. This is the reason they have to go through so many different factors of your life, such as job security and income. If you do happen to switch jobs during the loan process, you should let your lender know as soon as possible. If the job you're switching to is within the same industry as the previous job that you'll be switching from, it may not hurt you in getting a loan. However, with that being said, you should try to avoid switching jobs until after you have closed on a home.

4. Do NOT Furnish A Home Before You Own It!
We all know it's hard not to walk into a vacant home and start envisioning where things will go and what you're going to buy for any of the rooms. This is something many first-time homebuyers will do... but don't. It's easy to fall in love, but even harder to get over it when it turns out you either can't or don't, have the ability to get that specific home. Deals fall through even at the very end sometimes, so it's better to be safe than sorry. So wait to buy that fancy new couch, flat-screen TV, and huge entertainment center. You'll feel a lot better taking them right from the store and straight into your new home. 

5. Do NOT Get Behind On Any Payments
Always make sure to stay on top of any payments you have right now. Just because you've been pre-approved does not mean you can fall behind right before closing. Your lender will keep a check on your credit score and paid amounts. And even after closing, don't let yourself fall behind anyway! 

6. Do NOT Underestimate Your Expenses
You need to make sure that you budget everything before making any decision on a home. Just because you are pre-approved does not mean that you need to stretch your budget. It's so important that you know exactly what you can afford on top of buying groceries, paying utilities, and any other expenses that you may have. You want to feel comfortable and good about the decision you're making, so it's better to be ahead of the game before you get to the closing point. 

Basically at this point, the biggest thing you need to take away from this is that you never need to do anything that can harm your credit or finances right before closing on a home. You've made it so far in the process to make one little mistake and have everything go sour in the deal. If you're beginning the process of buying a home, I congratulate you and hope all goes well for you! Just make sure not to do these six things before you close on that beautiful future home of yours!