Unlocked Homebuyers Series
The Ultimate Guide to a Smooth Buying Process
Welcome to my 8-week series dedicated to demystifying your home-buying journey in the Sunshine State. I’m all about sharing insider insights to empower you on your quest for your dream Florida home. Get ready to make informed decisions and embark on your Next Chapter home adventure with confidence!
Navigating the world of real estate as a buyer in search of that next chapter of life home can be like exploring uncharted waters. That’s why my 8-week series will be your trusty compass, guiding you through the twists and turns of the process. Consider this your behind-the-scenes peek at what to look out for and consider when setting out on your home search.
Did you know that seemingly harmless everyday activities could affect your chances of securing your dream home? Avoid these potential missteps that might raise eyebrows with your lender and throw a curveball into your mortgage approval.
Here are seven things you should absolutely avoid while you’re in the process of finding your perfect home:
1. NEVER Change Career Paths
Lenders love stability, and consistency in your employment history is a key factor. So, during the months leading up to your home purchase, it’s wise to hold off on changing career paths (or a job itself, for that matter!) or venturing into new business endeavors. While career growth is fantastic, it’s best to wait until after you’ve moved in or finalized the paperwork before making any major job changes.
2. NEVER Pay Off Creditors Without Checking
It might seem counterintuitive, but there’s wisdom in this advice. Certain loans require specific “reserves” in your bank account to qualify. Paying off debts could disrupt your qualification process. Before you make any moves, consult your lender to ensure you’re making the right financial decisions.
3. NEVER Make Major Purchases
The excitement of homeownership often leads to a desire for new furniture, appliances, and more. But hold off on those splurges until after the mortgage process. Frequent credit inquiries or high debt-to-income ratios could impact your loan approval. Once the mortgage process is complete and you’re settled in, you can indulge in that new car or furniture.
4. NEVER Have Late Payments
On-time payments are essential at all times, especially when you’re aiming to buy a home. In the months leading up to your home search, maintaining a spotless payment record becomes even more crucial. Late payments on various accounts could affect your mortgage approval or lead to higher interest rates.
5. NEVER Accept Unusual Bank Deposits
Lenders prefer to see consistent financial stability in your account for at least two months – a process known as “seasoning.” Abrupt large deposits might raise suspicion, indicating that funds appeared out of thin air. This could complicate your approval process. Lenders want assurance that you can manage a mortgage responsibly.
6. NEVER Co-sign During This Time
Your home purchase journey is not the time to co-sign for anyone. Even if you trust the beneficiary and aren’t making the payments yourself, co-signing a loan can affect your debt-to-income ratio. If the borrower defaults, your loan process could be jeopardized.
7. NEVER Make Sudden Asset Changes
Buying a home is a significant investment in itself. Other investments, even during a bullish stock market, can drain your liquid assets that lenders like to see. Wait until after you’ve secured your new home to explore additional investments.
Next week in our series, we’ll be Spotting the Red Flags to watch out for on your path to homeownership. Stay tuned, and get ready to sail smoothly towards your dream Florida home!
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Hey there, I'm April Tsotsos, and I love teaching first time homebuyers and homesellers best practices and how to access all of their options available to them right here in North Port, Florida.
Serving North Port, Florida and surrounding areas
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