Here are 10 things to avoid while you’re buying a home:
Don’t change your job before applying for a home loan. Also, now is not the right time to become self-employed or to quit your job. You want to show lenders stability, which means you’ll be less likely to default on the loan.
Don’t change banks.As with your employment, you want your banking history to show stability.
Don’t buy a car that you have to finance.Buying a vehicle or any other form of transportation through a loan increases your debt-to-income ratio, and loan officers don’t want to see that.
Don’t buy furniture on credit before buying your house.Charging big-ticket items increases your debt-to-income ratio. Save your money for the down payment.
Don’t be late on your credit card payments or charge excessively. You need a track record of responsibility that shows you can manage your money.
Don’t make large deposits into your bank accounts.Lenders like it when the money for your down payment has been sitting in your account for at least two months – what they call ‘seasoning’ – so that the funds don’t just appear out of the air.
Don’t lie on your loan application.Sounds simple, right? But don’t leave out any debts or liabilities or fudge your income. It’s fraud.
Don’t co-sign a loan for anyone.Even if you’re not making the payments on that loan, co-signing increases your debt-to-income ratio.
Don’t apply for new credit cards or prompt any other inquiries into your credit rating. Looking for new credit translates into higher risk for lenders. If your inquiries are related to your mortgage search that usually doesn’t affect your credit score, because lenders assume that you’re rate-shopping. But opening credit accounts within a short period of time represents some risk, and your credit could take a hit. Inquiries are probably not a huge factor in calculating your ability to repay a loan, but why take a chance?
Don’t spend money you’ll need for closing costs.Part of the price of financing a loan is closing costs, and you’ll likely have some responsibility for paying them. Make sure you have enough for your share.
Author:Pete LaSalle Phone: 219-707-2476 Dated: April 3rd 2017 Views: 42 About Pete: The LaSalle Realty Group consists of Husband and Wife Renata & Pete LaSalle. We have a full service ...
Weichert, Realtors – NWI & Company is located in the heart of Valparaiso Indiana, Porter County. Broker Owners, Pete & Renata LaSalle are proud to be affiliated with WEICHERT, REALTORS® one of the most powerful and respected names in Real Estate. We want to remain a staple in our community and contribute to its continued growth and development. It’s our company goal to be innovative business leaders and maintain high stature in our local marketplace, while being recognized for customer service and continually educating ourselves & consumers.
Our Team of Brokers are ready to serve client needs in Northwest Indiana including Porter, Lake, & LaPorte counties. We also service neighboring counties of Starke, White & Jasper. We pride ourselves in being diverse agents with vast knowledge in all types of residential sales, whether New Construction, Relocation, Traditional Buying/Selling, REO, Short Sale, Estates, Lakefront, Land, Farm, or Investments.
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LaSalle Realty Group would like to announce that Valpo has added Veloc
"Roger Massey Reviewed LaSalle Realty Group — 5 star
December 21, 2016 ·
This is overdue but you popped up in my feed and thought, now's the time! Thank you for helping me and family find our home. We've been in just over a year now, about to celebrate our 2nd Christmas here. We are still thankful for you and this place. You worked hard to get us in here!! Anytime I hear someone talking about looking for a home to buy or sell, I tell them to call you. Merry Christmas, Pete and Renata!"