Things That You Shouldn’t Do

Buying a brand-new home should be an exciting time. You are finally going to be a homeowner of your dream home. You may have looked for a few weeks or even months but you have finally got a contract in place and you are ready to settle into the next stage of your life.

You may decide that you are ready to celebrate. However, you should wait a little longer. Unfortunately, too many people make mistakes right before they settle on a home and the loan ends up falling through. Lucky for you, you have this article to help you end up in the home that you have always wanted.

Here are some things that you shouldn't do during this time.

Don't quit your job. Mortgage companies need to know that you are not a big risk, and one way to show them this is by finding a job that you enjoy and staying there. People who are constantly switching jobs may struggle to find a good loan for their home.

Don't forget to shop around for a mortgage. It is important that you meet with several lenders so that you can find the most affordable options. Most banks and companies have different criteria for their loans, so you might find that you can afford more house than you ever thought - just by shopping around!

Don't use credit unnecessarily. Though you may be tempted to splurge on furniture and other big-ticket items, you shouldn't. This will change your credit score. Also, if you buy enough, your debt-to-income ratio may increase, making it seem like you won't be able to afford your monthly mortgage payments.

Don't deposit large amounts of money into your account close to settlement time. Companies will get suspicious if you come up with a few thousand dollars all at once. They prefer that you slowly save money up to get a down payment, and are more likely to lend money to those who have had money in their account for a few months.

That being said, don't stop saving for your down payment. By continuing to save, you are showing the mortgage company that you are dedicated to buying a home. The more money you have down, the more affordable your home will be, so it is important to save, save, and save some more.

Don't have a trusted Realtor on your side. Too many people believe that they don't need a real estate agent, especially if they buy a brand-new home or one for sale by the owner. However, that is far from the truth. Having a Realtor on your side can make the whole process go much more smoothly. Their knowledge alone will help you navigate this stressful time.

Buying a home (even a brand-new one) can be both scary and exciting. A realtor can help you through the process and ensure that you don't make any mistakes that could cause the whole thing to fall through!

Though you may feel like celebrating, now is not the time! You need to continue to show your lender that you are trustworthy and they can loan you the money for your home. In order to do this, you should shop around for the best deal that you can find. 

Once you are locked in, you should keep your job. Nothing looks worse to a lender than somebody who doesn't have a job. You also need to continue to save toward your down payment, but not by borrowing money from others and putting it into your account. 

You also shouldn't go on a shopping spree. Though you are going to want to furnish your new home, it is not a good idea to take out new credit cards and start using them heavily. This can really impact your credit. 

You should also never go through this process alone, so make sure you find a Realtor you trust so you don't make any mistakes.

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Previously published on Medium and Newsbreak.