4 Financial Do’s and Don’ts for Home Buyers
Written by Wena Roeloffze I REALTOR, Lifestyle Expert and TV Host for The American Dream TV I Realty Club 74 I Brokeraged by Coldwell Banker Realty
No matter what type of housing market you are faced with, there are certain things you can always do to make sure your home loan process is easy and smooth.
House hunting can be stressful and exciting at the same time. And when you made the offer and it got accepted, the reality of purchasing a home sets in. Below we made a list of the 4 most important financial factors which you need to prepare for.
1. DO
Besides putting money aside for your downpayment and closing costs, put some money aside for your home inspection, moving costs, painting, cleaning and pet-sitting or child care for the big day of moving in.
It is exciting to be purchasing your own home, especially if you have been renting for a long time. Take into consideration that a coat of fresh paint on your walls and a good cleaning will energize your home and make it feel fresh. Be prepared for all these sneaky expenses – they add up fast.
2. DO
Continue to make all of your monthly payments on time, including those that are in dispute. Keep your spending in check and do not fall in arrears with any payments.
Your mortgage was approved because of your past spending record and credit score. This is the most important time to keep up with all your financial responsibilities and to avoid unnecessary issues.
3. DON’T
Hold on making any significant career moves or changing your pay structure (such as transitioning from a salaried position to a 100% commission job). The mortgage lender will do one final check on you 2 days before closing to make sure your situation hasn’t changed. If you had any significant changes, your closing might be in jeopardy.
In the odd instance that you lost your employment, make sure to let your mortgage lender know about the changes. Upfront communication is helpful and there are many positive outcome stories where transactions were saved.
4. DON’T
This is not the time to make any big purchases using either existing credit cards or new lines of credit. You can buy the boat, the furniture and the new car after closing.
We totally understand that you would need extra furniture or appliances, but please do not incur any new debt or spend anything before closing day. Prepare in advance for getting all that organized.
We hope these 4 financial tips will help you prepare for your new home purchase. In our quest to making it easier for you to purchase real estate, we compiled a list of our trusted partners to assist you with the loan process as well as the home inspection process. Follow this link to our website and download your free Buyer Guide with all the links to get in touch with professionals that will assist you in your process.
Also see our blog featuring information on how your family and friends can contribute to your down payment easily and effortlessly – no paperwork necessary!! https://realtyclub74.com/blog/how-to-get-money-for-down-payment
Have more questions, schedule your call here.