Buying a new home can be both an exciting and nerve-racking process. There are many factors to consider and there may be disappointments to deal with along the way. Being prepared can help you avoid some of the pitfalls. The heartbreak of not qualifying for a home you’re looking at, or maybe having to pay a higher interest rate can be avoided by keeping some things in mind. When it comes time to buy that home, you’ll be glad you didn’t make these mistakes.
Your credit score is one of the most important things to stay on top of. Your credit score can influence everything from car insurance to buying furniture. When it comes time to buy a house, your credit score will have a huge impact on what interest rate you can get on your mortgage and may even influence your qualifying status. It’s important to note that most traditional types of mortgages will require a credit score of above 620. A good credit score will have saved you tens of thousands of dollars over the life of your mortgage loan. It’s a good idea to check your credit score and get it in order before you start looking for a house.
Once you apply for a mortgage loan your finances will be gone through with a fine-toothed comb. Therefore, it is very important that changes to your financial picture be kept to a minimum until your loan has closed. Even changing jobs in the middle of buying a house can cause the entire process to be reevaluated increasing the time and complexity of the loan. Delays like these can in some cases cause deposits to be lost, or sellers may become discouraged and change their minds. Try not to take on a new job until your mortgage loan has closed.
Something as simple as applying for a credit card when you’re in the middle of the mortgage loan process can be detrimental because it will also affect your financial picture and cause the lender to reevaluate. Make your home buying experience a little better by avoiding these mistakes.