Are you gearing up to qualify for a home purchase? It's an exciting journey but beware of certain pitfalls that can derail your dream. Here, we uncover the top 10 mistakes you should avoid to ensure a smooth path to homeownership. Perfect for those in the market for a new home, these tips are a must-read:
Changing Jobs: Stability is key. Lenders favour a steady employment history. Avoid switching jobs, quitting, or starting self-employment until your purchase is complete.
Shuffling Finances: Keep your finances steady. Moving money between accounts can complicate the lender’s verification process.
Purchasing a Vehicle: A new car loan can impact your mortgage borrowing capacity. Postpone any vehicle purchases until after closing.
Overusing Credit Cards: High credit card usage can lower your credit score. Keep your credit utilization in check and keep up to date with payments.
Spending Closing Funds: Guard your closing cost savings. Using this money prematurely can risk your mortgage approval.
Hiding Debts: Transparency is crucial. Disclose all debts and liabilities upfront to avoid surprises during the loan process.
Big Purchases: Delay buying appliances or furniture. Such expenses can alert lenders and potentially disrupt your mortgage process.
Excessive Credit Checks: Too many hard inquiries on your credit report can decrease your score. Limit credit applications before closing.
Unexplained Deposits: Consult your mortgage broker before making large deposits. These need proper documentation and verification.
Co-Signing Loans: Co-signing increases your financial obligations and can impact your loan eligibility.
Navigating the home-buying process can be complex and it is important to set yourself up for success. Avoiding these common mistakes can make your journey to homeownership smoother and more successful. For more insights and personalized advice, feel free to reach out to our team. Happy house hunting!