OK, you’ve made the decision that you’re going to buy a home–Congratulations! Smart choice #1!
You’ve found a REALTOR® that you feel comfortable with to represent you and guide you through the process. Smart choice #2!
Next step–get pre-approved for a mortgage loan. Smart choice #3! You’re on a roll here, so don’t mess it up now! Follow these tips during the application process to make things go smoothly!
1. DON’T apply for new credit of any kind! Credit cards, car loans, furniture, major appliances, anything!
2. DON’T close credit card accounts or consolidate accounts!
3. DON’T max out your credit cards!
4. DON’T co-sign for any loans (see #1!)
5. DO stay current on your payments–for everything!
6. DON’T quit or change jobs!
7. DON’T make any large purchases (car, furniture, appliances, computer, travel, etc.)
8. DON’T make any large deposits into your checking or savings accounts.
9. DO continue 1-8 until you have closed on the purchase of your home!
10. DO trust me on this!
Why is all this so important? Good question!! All these things impact your credit score, your credit-worthiness, and also your debt-to-income ratio. These are what can tip the scales in your favor or against you when qualifying for a mortgage. They matter–a lot! And not only do lenders look at them when you initially apply, they also check again right before closing. If there have been any major changes, you could find your loan in jeopardy! This almost happened to one of my first buyers when she bought all new furniture before closing. She used the money in her savings account to pay cash, the same money that had helped her qualify for her loan!
If you have chosen a smart REALTOR® and a reputable lender, they will tell you all of this. PAY ATTENTION! It really does matter!
Good luck and congratulations! And if you’re in San Antonio, call me! I’d love to help you find the perfect home for you!
All the best,
Sue Trautner, REALTOR®