Want To Qualify For A Home Loan? Here Are Ten Things To Avoid

Once you’ve qualified for a home loan, that doesn’t mean that you are entirely in the clear. Here is a list of ten things that you should avoid doing if you want to make sure that you can qualify, and stay qualified, for your new home.

Number One: Don’t Change Jobs (Unless You Really Have To)

Lenders like applicants with a stable job history, since your income is what you will be using to pay your mortgage, after all. Changing jobs within the same field is usually not a red flag, but be careful just the same.

Number Two: Steer Clear of Inexperienced Sellers:

If you buy a house that is for sale by owner, be sure that the seller understands that your good faith deposit is refundable before closing. Some people who attempt to sell their homes on their own are not as informed as they should be about certain aspects of real estate, so make sure that the person that you are buying a home from is.

Number Three: Don’t Forget To Switch Your Services Over:

This may sound silly, but you’d be surprised if you knew just how many homeowners found themselves spending their first night without electricity. Once the sale has closed, the keys are in your (or your realtor’s) hands, and everything is finalized, don’t forget to call the electric, water, gas, cable, and phone companies to set up service.

Number Four: Don’t Forget To Buy Homeowner’s Insurance.

Again, you’d be surprised by how many people neglect this important detail. Number Five: Don’t Let Your Emotions Run Wild: You’re excited, you’re anxious, you’re scared: all of these emotions are normal when it comes to home buying, but it’s important not to let them control your decisions. If a seller won’t meet all of your demands, don’t shy away from agreeing to make a minor repair or replacement yourself. On the other hand, don’t allow yourself so desperate to own your own home that you feel yourself taking on more than you bargained for.

Number Six: Don’t Become Best Friends or Worst Enemies With The Seller:

It’s tempting to befriend the person from whom you will be purchasing your next home, but this may work against you if you find yourself unable to suggest repairs, improvement allowances, etc, for fear that you might hurt your new friend’s feelings. While this won’t keep you from qualifying for your home loan, it might keep you from getting the deal that you deserve. Similarly, rude, snobbish behavior never gets anyone anywhere, so be sure to be friendly, but professional, when dealing with the seller.

Number Seven: Don’t Worry If The Appraisal Comes In Low:

Or if the home inspection turns up a few nasty surprises. This, again, won’t keep you from qualifying for your home loan, but it many scare you away from buying the house, even if you really love it. As long as the problems are minor, a low appraisal or home inspection score are not necessarily red flags.

Number Eight: Don’t Forget To Do A Final Walkthrough:

You may see things that you didn’t see before, and if so, it’s better to notice them before you sign the final papers. This doesn’t mean that you should be looking for something major, as long as your new home has been inspected and appraised, there shouldn’t be any surprises in store in the first place. All a final walk through does is provide you with that final and most important opportunity to notice any last minute problems.

Number Nine: Don’t Forget About Your Credit:

Just because you’ve been approved, that doesn’t mean that its time to run up credit card debt like there’s no tomorrow. (There should never be a time when you feel like you have the right to run up credit debt like there’s no tomorrow, but that’s a topic for another article) Your lender has the right to pull your credit at any time before closing costs are final, so be aware of this before you make any big ticket purchases.

Number Ten: Don’t Forget To Breathe:

Home buying can be a stressful experience, but remember, the goal is to obtain the home you’ve always wanted, and your agent and lender are on your side. Relax, buy smart, and don’t forget the above tips, and you should be holding the keys to your new home in your hand in no time at all.

Be sure to discuss any and all home buying strategies with your qualified tax professional and personal financial advisor before making a decision. Home ownership is a major step, and it is important to enter into it both well informed and well prepared.