8 Things You Shouldn’t Do When Buying a Home

Here are the eight things you can’t do when you’re buying a home.

There are a lot of mistakes that can be made during a real estate purchase. Here are eight things you should not do so you don’t screw anything up accidentally:

1. Don’t change jobs or quit. I've had two different clients do this while buying a home, and it slowed down the process.

2. Don’t make large purchases. If you’re going to go out and buy a washer, refrigerator, or a car to go with your new house, it’s better to wait until after closing so it doesn’t mess up your credit and debt-to-income ratio.

3. Don’t change hours or take unpaid time off. If your W-2s show that you’re not making what you normally would because of fewer hours or unpaid time off, that can cause a big problem.

4. Don’t use mattress money—that is, a bundle of cash. Unfortunately, you can’t do this. The lender has to be able to source the funds to finish the loan. If you do have a bunch of cash lying around and want to use it for your home, deposit it and make sure it’s in your bank account for at least 90 days.

"Don’t cosign on any other loan until after you close on your home purchase."

5. Don’t run your credit multiple times. You can run your credit multiple times while you’re shopping for a rate, but you want to do it within a 15- or 30-day period. Each of the three credit bureaus has three different periods and you should talk to your licensed lender first.

6. Don’t overuse credit cards. When you're under contract, this can affect your score and debt-to-income ratio greatly. Keep your credit card limits where they usually are.

7. Don’t cosign on a loan. Whether it’s a home or car loan, don’t cosign while you're in the process of buying a home. It’s another thing you’ll want to wait to do until after closing.

8. Don't go on vacation during closing. You have to physically be at closing in person to sign some documents. Any delay in closing could jeopardize your transaction.

If you have any questions about these tips or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

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