Financial Mistakes To Avoid When Buying A Home
Working with many clients over the years, I have learned that often a list of what to do is provided to homebuyers; but rarely a highlight of what to stay away from. Here, I want to share with you the things to look out for as you embark on your new home purchase.
Before you start to look for that new home, here are 5 things to avoid:
- Your credit score, bankruptcy & late payments directly inpacts your ability to get a home loan; the type of loan & the interest rate. Several months before beginning that search, re-establish credit by lowering credit card balances to below 30%, correct any errors reported & avoid constantly running your credit to see your score.
- Debt counts for 35% of your credit score, be sure to avoid late payments or being put into collections.
- Do not go on “shopping sprees” with cash or credit cards. Large “cash” purchases or withdrawals may cause red flags on bank statements.
- Job income over a 2 year period will have a huge impact on your ability to qualify for a home loan, avoid any job changes during the home buying process.
- Stick within your price range even if you are qualified for a higher amount, you know better than anybody whether you can afford the monthly payment.
These tips are designed to keep you on track to obtain your goal and get the home of your dreams. Real Estate Tips on HomesByHaris.
When you are ready to start your home search, please contact Haris Dedic at 847-878-2588.
Our RE/MAX Villager office has served homebuyers for many years. Call me to find out why so many people choose us when buying a home.
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