Buying a home is a significant financial decision, and adhering to certain guidelines can indeed make the process smoother and more successful and increase the likelihood of successfully obtaining a mortgage. Here are 10 commandments of buying a home:
- Stability of Income is the Key: Avoid significant changes in employment status as lenders prefer stable income sources.
- Hold Off on Major Purchases: Delay big purchases like vehicles until after closing to maintain financial stability.
- Credit Usage: Refrain from excessive credit card use or letting accounts fall behind to maintain a favorable debt-to-income ratio.
- Protect Your Closing Funds: Don’t dip into money set aside for closing costs and smooth closing.
- Full Disclosure: Disclose all debts and liabilities on the loan application to maintain transparency with lenders.
- Furniture Purchases: Hold off on buying furniture on credit until after the home loan closes.
- Avoid Credit Inquiries: Minimize activities that trigger credit checks to maintain your debt-to-income ratio.
- Consult Your Loan Officer: Get approval before making significant deposits or withdrawals to ensure transparency and compliance.
- Bank Account Stability: Avoid changing bank accounts during the loan process to maintain consistency in financial documentation.
- Co-Signing: Refrain from co-signing loans or leases to prevent it from affecting your mortgage application.
By adhering to these commandments, prospective homebuyers can increase their chances of a successful and smooth home buying journey.
