Do's & Don'ts Before Buying A Home
DO…
- Save up money for a down payment and/or closing costs (the more money you have for a down payment, the less your loan amount will be and the better you look in the seller's eyes)
- Pay off debts and much as possible (the less debt you have, the more house you can qualify for, usually)
- Get a copy of your credit report and clear up any discrepancies (you might be surprised to find odd charges to your credit report or old debts; by clearing them up now, you'll save time later when you are getting a mortgage)
- Tell model home centers and open houses that you are working with a REALTOR® (us!); better yet, call us beforehand and I'll go with you
- Make a list of likes and dislikes in a home (this will help us find the perfect home for you and also weed out the "dogs"; this in turn will save you a lot of time when looking for a home)
- Write down questions you have about buying a home (we have the answers)
- Call us!
DON'T…
- Visit model homes, new homes, or open houses without Leif (when you visit model homes, they will ask you to sign their register book; by doing that, you are waiving your right to be represented by a REALTOR®; better to call us before you visit those places)
- Change jobs to a different line of work (remain in the same field if you must change jobs)
- Change jobs if it is commission-based (mortgage lenders will calculate your commissions over the last two years; if you start a commission-based job, the lender cannot predict your future earnings)
- Change jobs if you work less than 40 hours/week and receive an hourly wage (mortgage lenders cannot calculate your income accurately with the new job, but they can average your earnings with your current job)
- Change jobs if you want to be self-employed (wait until after you buy the home)
- Change your business from a sole proprietorship to a partnership or corporation
- Make major purchases of any kind (don't buy anything that will create debt such as cars, furniture, electronics, computers, vacations, jewelry, appliances)
- Buy a car! (a car payment will seriously affect your debt-to-income ratio and could undermine your ability to qualify for a mortgage)
- Panic (the process of buying a home does not have to be painful or frustrating)
Happy house hunting!
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