Boise Homes For Sale: Things to Avoid When Buying a Home
Posted by: Trish / Category: Real Estate NewsThere are several things to consider when getting ready to buy a home. Your credit is one of the most important things. To help you with your credit score, there are several things to avoid.
1. Don’t move assets from one bank account to another. This can complicate the application process because the transfers show as new deposits. You must then explain to your lender the source of funds and it can slow down the process. You can do any consolidating later after you have closed on your loan.
2. Don’t change jobs. Most lenders prefer that you have been with your present employer for at least 2 years. If you must change jobs, it is best to stay in the same line of work.
3. Don’t assume your credit is good. Inaccurate information can occur without your being aware of it. Or sometimes, an item that you believe to have been taken care of will still show up on your credit report. Experts say you should review your credit report at least once a year.
4. Don’t attempt to consolidate bills. Consolidating and closing credit cards can lower your cumulative credit history and therefore can lower your FICO score. Contact your lender, or Judy Bauer with Prospect Mortgage with any questions before making any financial changes.
5. Make sure you don’t pack or ship information needed for your loan application. When packing, don’t pack important paperwork such as W-2 forms, divorce papers and tax returns. Duplicate copies can take weeks to obtain and this can stall the closing date on your transaction.
6. Don’t make a major purchase. Don’t buy new furniture or major appliances for your new home. A large payment can greatly impact your debt to income ratio and prevent you from qualifying for a home loan. This has happened the day before closing when the buyer’s credit was rechecked. At the last minute the loan was denied. If you think you can afford it, make the purchase after the transaction has closed.
If you have any questions regarding financing, please call Judy Bauer with Prospect Mortgage 208-377-7246 or if you have any real estate needs please contact Trish Stephenson with Silvercreek Realty Group at 208-388-4653.