Key Do’s and Don’ts in Mortgage Financing a New Home
1. Stay stable with your current employment. Don’t change jobs or for that matter become self-employed.
2. Hold on to the vehicles and other expensive personal items you currently have. Don’t buy a new car, furniture or other big ticket items.
3. Keep your credit card purchases to a minimum and stay current on your payments. Don’t use your credit cards excessively.
4. Keep saving money towards a home purchase. Conversely, don’t spend the money you have set aside for a home purchase.
5. Keep track of all your debt. Never omit any debts or liabilities from any loan applications.
6. Keep a low profile with requests for any kind of credit. Don’t put yourself in a situation where others will inquire about your credit.
7. Stay the course with normal bank transactions. Don’t make large bank deposits or transfers to any accounts; if it is necessary make sure you have a paper trail that can be explained, whether checking or savings.
8. Stay with the current bank accounts and credit cards you have. Don’t cancel or change bank accounts or credit cards.
9. Stay focused on keeping up your existing personal obligations. Don’t cosign for anyone.
There are lots of good reasons to keep this list in mind. I.e., I remember once, many years ago, when a buyer- client looking for a home purchased expensive new furniture on credit for a house she did not yet have. It threw her credit ratios out of whack and she had to pay off and rework her debt to eventually get a loan for a home much later than she had intended. Talk with your lender if you need to deviate from these points.
Thanks to Jennifer Collison of Alerus Bank in Grand Forks, ND for sharing her companies list of “Nine Things Not To Do When Buying/Refinancing a Home”. She can be reached directly at her number of 701-7963292 or on her cell at 406-439-4004.
3-24-23