Are you in the market for a new home and ready to complete your mortgage application? Great! We want to make sure that your home buying process is as smooth as possible. We’ve helped many clients purchase their homes and have seen how some exciting life choices have made their home buying journey a little more challenging.
If you’re a first-time home buyer, navigating the path to homeownership can be both exciting and daunting. Understanding the home buying process timeline is essential to ensure a smooth and successful journey. From exploring what is considered a large purchase when buying a house to getting a personal loan before buying, we’ve got you covered with expert advice to help you make informed decisions.
In this article, we’ll shed light on common home buying mistakes to avoid, including what not to do when applying for a mortgage. Our goal is to equip you with the knowledge and confidence to buy a home that suits your needs and financial situation.
Whether you’re just starting to explore what is the process of buying a house or you’ve already begun your search, our valuable tips and insights will pave the way for a rewarding home buying experience.
Consider the 6 points below to ensure your life plans (as exciting as they may be) do not get in the way of making your homeownership dreams come true.
- Don’t move assets from one bank account to another. These transfers complicate the application process. If you do need to make any transfers, be sure to communicate that with your lender. They can help you with any questions and help you determine the best time to move your assets over.
- Don’t change jobs. A new job is exciting! But it may involve a probationary period where a certain number of days must be completed prior to receiving any income. If you have changed jobs recently, be sure to check with your employer to ensure that you are outside of the probationary period prior to sending in your mortgage application.
- Don’t make any major purchases. If the new purchase increases the amount of debt you are responsible for on a monthly basis, there is the possibility that this may complicate or disqualify you from your mortgage loan. This additional debt could also cut down on the available funds needed for closing cost requirements. Be sure to hold off from making large purchases for your new home until after closing.
- Don’t run a credit report on yourself. This will show up as an inquiry on your lender’s credit report. In most cases, when a credit report is run–whether you do it or someone else does it–it has the ability to affect your credit–your credit score will take a dip. If you do need to run one for any reason, share with your loan officer ahead of time, and explain the need for the inquiry in writing.
- Don’t pack or ship documents that you need for your loan. Important paperwork such as W-2s, divorce decrees, and tax returns should not be sent with your household goods when moving. Duplicate copies take weeks to obtain and could stall the closing date on your transaction. Put aside all important documents in a safe location where you can easily access them.
- Don’t attempt to consolidate your bills. Always speak to your lender first, and they will advise you if this decision could affect your mortgage loan. Getting a personal loan before buying a house, even if it’s to consolidate your bills, may jeopardize qualifying for a mortgage.
To learn more about the home buying process, Enroll in our FREE online course today!
As a first-time home buyer, the process of purchasing your dream home can feel overwhelming, but knowledge is power. Educating yourself about essential factors such as interest rates, if you qualify for special loans like VA loans or FOP loans, will give you a significant advantage. Understanding the impact of your credit history, payment history, and credit card usage on mortgage payments is crucial for securing the best loan options.
Additionally, exploring the role of a real estate agent, home appraisal, and how to negotiate the purchase price will ensure you make informed decisions throughout the home buying journey.
Whether you’re considering FHA loans or other financing options, taking the time to learn more about the process will empower you to navigate the real estate market with confidence and make your homeownership dreams a reality.
