WHAT NEVER TO DO BEFORE BUYING A HOME

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HomeSmart

For more information about the author, click to view their website: Jude Creamer / HomeSmart

Posted on

Jul 09, 2024

Book/Edition

Florida - Sarasota, Bradenton & Charlotte Counties

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MY Dirty Little Secrets For Buying a Home

Buying a home for the first time can be confusing. Thats why I love to send tips and strategies that will set you on the right path. Its my own unique approach and a “behind the scenes” glimpse of what you should look out for and consider when starting your own search for a home.

Did you know that some normal — even harmless everyday activities — could hurt your chances of buying your dream home?  You want to avoid any slip-ups that might make your lender think twice about processing your mortgage loan.

Here are seven things that you should “never, ever, ever, ever” do during the time you are searching for a home:

1. NEVER Change Jobs

Stability is key when seeking approval from lenders, so the months leading up to your home purchase is not a good time to seek other employment or start up any new endeavors.

While enhancing your career and moving up is important financially, you should wait until after you’ve moved in, or at least signed the final documents, to switch jobs or pursue any entrepreneurial interests.

Remember, lenders don’t want to take risks and are looking to loan money to someone who they know can pay it back. Leaving your current job can be a red flag to them!

2. NEVER Pay-Off Creditors (without checking with your lender first)

Sounds counterintuitive, but it’s not.  Certain loans require you to have certain “reserves” in the bank to qualify.  So, you might actually do more harm than good if you pay off your credit cards, student loans or any other debt you have.  Check with your lender first before you pay anything off. 

Having debt is not always a bad thing and may not be as big of an obstacle to your owning a home as you think. So don’t pay it off unless your lender tells you to do so.

3. NEVER Make Major Purchases

One of the fun things about buying a new home is all the other new stuff that comes with it. Often, people want new furniture, appliances, and the list goes on and on!

Most major purchases today require credit, and that means you don’t want to have a large number of inquiries on your report during the loan process. Plus you don’t want to have a higher debt-to-income ratio than necessary before you close on a home.

Your best bet is to hold off on buying anything major until you have completely finished the mortgage process and you’ve moved in. That new car can wait!

4. NEVER Have Late Payments

You should always make payments on time whether you’re planning on buying a home or not.  However, in the months leading up to your looking for a home, you want to be especially careful not to be late on car payments, insurance premiums, credit cards, even parking tickets! This could derail the approval of your mortgage or increase your interest rate.

5. NEVER Accept Out of Ordinary Bank Deposits

Lenders prefer to see proof that the bulk of your down payment fund has been in your account for at least two months — also known as “seasoning.”

As stated before, stability is key, so you don’t want it to like look money suddenly moved into your account out of nowhere. This looks suspicious and may signify that you may be depending on family members or others for your down payment. (There is a way to get a loan or gift from family though!) The lender wants to know that you can afford and maintain a mortgage.

6. NEVER Agree to Co-sign

Your home buying process is not the time to co-sign anything!  Even though you’re not the one making the payments, and no matter how much you trust your beneficiary, co-signing a loan, no matter how small, increases your debt-to-income ratio.

And a default on the part of the borrower can jeopardize your entire loan process.

7. NEVER Have A Change in Your Assets

Don’t forget that you’re already making a major investment — buying your new home! It’s not the time for other investments even if the stock market is bullish. Other investments would deplete your liquid assets that you need to make lenders comfortable, so you’re better off waiting until you’ve officially bought your new house.

Stay tuned for more “behind the scenes” glimpses of the do’s and don’ts of home buying.

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Local Services By This Author

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Senior Transition Services , , Florida,

Empathetic Support for Out-of-State FamiliesNavigating the complexities of transitioning a loved one to assisted or independent living from afar can be daunting. As someone who has faced similar challenges firsthand, I understand the emotional and logistical hurdles, particularly when it comes to managing the sale of your parents' home. Your Trusted Local Ally: Providing Care and GuidanceI'm Jude Creamer, and I offer a holistic solution tailored to ease the burden of handling real estate transactions from a distance. Based locally in Bradenton and Sarasota, I provide the compassionate support and professional expertise needed to ensure a seamless transition for you and your family. With my personal insight and a dedicated team, we'll prepare the property for sale and oversee the entire process with meticulous attention to detail. Peace of Mind, Even from AfarRecognizing the challenges of managing estate affairs remotely, I offer a comprehensive service that relieves the stress of long-distance property management. You can trust that I'll manage every aspect of the sale process diligently, allowing you to focus on other priorities while knowing your loved one's home is in capable hands. Support Every Step of the WayFrom arranging necessary repairs to staging the property for maximum appeal, my team and I handle every aspect of the sale with professionalism and care. Understanding that distance can pose limitations, I strive to provide personalized support that aligns with your family's needs and preferences. Methodical and Effective ExecutionNavigating estate transactions requires a systematic approach, and I'm equipped with the resources and expertise to ensure a smooth and efficient process. With a deep understanding of the local market and industry dynamics, I work tirelessly to achieve the best possible outcome for you and your family. Schedule a Consultation TodayWhen you're ready to entrust the sale of your parent's home to a compassionate and dedicated professional, don't hesitate to reach out. Let's collaborate to make this transition as seamless as possible, allowing you to focus on ensuring your loved one's new living situation is optimal for their next chapter.

Jude Creamer / HomeSmart

Transition Specialists , , Florida,

Empathetic Support for Out-of-State FamiliesNavigating the complexities of transitioning a loved one to assisted or independent living from afar can be daunting. As someone who has faced similar challenges firsthand, I understand the emotional and logistical hurdles, particularly when it comes to managing the sale of your parents' home. Your Trusted Local Ally: Providing Care and GuidanceI'm Jude Creamer, and I offer a holistic solution tailored to ease the burden of handling real estate transactions from a distance. Based locally in Bradenton and Sarasota, I provide the compassionate support and professional expertise needed to ensure a seamless transition for you and your family. With my personal insight and a dedicated team, we'll prepare the property for sale and oversee the entire process with meticulous attention to detail. Peace of Mind, Even from AfarRecognizing the challenges of managing estate affairs remotely, I offer a comprehensive service that relieves the stress of long-distance property management. You can trust that I'll manage every aspect of the sale process diligently, allowing you to focus on other priorities while knowing your loved one's home is in capable hands. Support Every Step of the WayFrom arranging necessary repairs to staging the property for maximum appeal, my team and I handle every aspect of the sale with professionalism and care. Understanding that distance can pose limitations, I strive to provide personalized support that aligns with your family's needs and preferences. Methodical and Effective ExecutionNavigating estate transactions requires a systematic approach, and I'm equipped with the resources and expertise to ensure a smooth and efficient process. With a deep understanding of the local market and industry dynamics, I work tirelessly to achieve the best possible outcome for you and your family. Schedule a Consultation TodayWhen you're ready to entrust the sale of your parent's home to a compassionate and dedicated professional, don't hesitate to reach out. Let's collaborate to make this transition as seamless as possible, allowing you to focus on ensuring your loved one's new living situation is optimal for their next chapter.

Jude Creamer / HomeSmart

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Empathetic Support for Out-of-State FamiliesNavigating the complexities of transitioning a loved one to assisted or independent living from afar can be daunting. As someone who has faced similar challenges firsthand, I understand the emotional and logistical hurdles, particularly when it comes to managing the sale of your parents' home. Your Trusted Local Ally: Providing Care and GuidanceI'm Jude Creamer, and I offer a holistic solution tailored to ease the burden of handling real estate transactions from a distance. Based locally in Bradenton and Sarasota, I provide the compassionate support and professional expertise needed to ensure a seamless transition for you and your family. With my personal insight and a dedicated team, we'll prepare the property for sale and oversee the entire process with meticulous attention to detail. Peace of Mind, Even from AfarRecognizing the challenges of managing estate affairs remotely, I offer a comprehensive service that relieves the stress of long-distance property management. You can trust that I'll manage every aspect of the sale process diligently, allowing you to focus on other priorities while knowing your loved one's home is in capable hands. Support Every Step of the WayFrom arranging necessary repairs to staging the property for maximum appeal, my team and I handle every aspect of the sale with professionalism and care. Understanding that distance can pose limitations, I strive to provide personalized support that aligns with your family's needs and preferences. Methodical and Effective ExecutionNavigating estate transactions requires a systematic approach, and I'm equipped with the resources and expertise to ensure a smooth and efficient process. With a deep understanding of the local market and industry dynamics, I work tirelessly to achieve the best possible outcome for you and your family. Schedule a Consultation TodayWhen you're ready to entrust the sale of your parent's home to a compassionate and dedicated professional, don't hesitate to reach out. Let's collaborate to make this transition as seamless as possible, allowing you to focus on ensuring your loved one's new living situation is optimal for their next chapter.