Buying a home can be both exciting and nerve racking. There are so many factors to consider and there’s always a chance that you’ll be disappointed from time to time. If you want to avoid the heartbreak of not qualifying for a home you’re looking at, or maybe having to pay a higher interest rate, there are some things you need to watch. When it comes time to buy that home you’ll be glad you didn’t make these mistakes.
Your credit score is something you should be watching all the time. Your credit score can influence everything from car insurance to buying furniture. When it comes to something like buying a house, your credit score will have a huge impact on what interest rate you can get on your mortgage. Most traditional types of mortgages products will require a credit score of above 620. Over the life of a mortgage loan, a good credit score will have saved you tens of thousands of dollars. Check your credit score and get it in order before you start looking for a house.
When you apply for a mortgage loan, your finances will be gone through with a fine-toothed comb. It is very important that changes to your financial picture be kept to a minimum until your loan has closed. Things like 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. In some cases, deposits may 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.
The same applies to applying for credit when you’re in the middle of the mortgage loan process. This will also affect your financial picture and cause the lender to reevaluate. Avoid making those mistakes and you should have a better home buying experience.