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You’ve found your dream home. You’ve been pre-approved, the seller has accepted your offer, the inspection went great and your closing date is set. However, remember the deal is not done yet and your lender can change their mind. Here are five things to avoid in order to keep your loan from being turned down.

1. Don’t mess with your income-to-debt ratio

Everything seems to be coming together and you couldn’t be more excited. Therefore, you want to start purchasing big ticket items to decorate the interior of your soon-to-be new home. Bad idea! The ratio of your monthly income to your monthly debts is a main factor the lender considered when qualifying you. And your lender will probably run your finances a few more times before closing. Therefore, don’t take out a loan, sign any car leases or make any big purchases. This could result in you losing the loan for your new home.

2. Don’t disappear

Keep in touch with your lender and be available to answer any last-minute concerns.

3. Keep your loan officer informed

Don’t make a large deposit or open a new bank account without checking with your loan officer first. A large deposit can lead to a lot of questions, such as where the money came from. Inform your Loan Officer of any financial changes, such as money transfers.

4. Don’t change jobs, become self-employed or quit your job

Most lenders prefer home buyers to have a two-year job history. Making a big career move can slow the home buying process down or even result in you losing the deal.

5. Don’t open a new credit card, use credit cards excessively or let your accounts fall behind

Engaging in behavior that could negatively impact your credit score could slow down the home buying process or result in you losing the loan.

If you would like to learn more about the home buying process, contact one of our experience agents here.

 

 

(RE/MAX Blog)-When searching for your next home, it is extremely important to distinguish between wants and needs. It is very easy to get caught up in the excitement and carried away with your list of “dream features.” This is when truly defining what you “want” in a home versus what you “must-have” in a home for your lifestyle comes to play.

A “need” should always take precedence over a “want” when it comes to making a big life decision, like purchasing a new home. Below is a list to help you find the right approach during your search for your next home.

1. Make a list. Write out your wants versus your needs. Needs should include things like location, school districts, neighborhoods, budget, number of bedrooms, features, amenities, plumbing and electrical that are updated, lot size, number of garage spaces and HOAs. Wants may include non-essentials, such as the style of the home, remodeled kitchen or baths, decks, pools, hot tubs, flooring material and landscapes.

2. Consult family members. If you’re purchasing a home for more people than yourself, ask your family members about their wants and needs for the home. Your spouse and children may have wants and needs that you are unaware of.

3. Consider how long you plan on staying in your next home. This can help you further determine your wants and needs. If you plan on staying short term, location, value and neighborhood will be important. If you are planning to live in your next home for the long term, think about upcoming life changes. You may want that extra bedroom if you plan on expanding your family.

4. Compromise. Be realistic and ask yourself what makes you happy? If cooking for your family in a large kitchen brings you joy, then make it a need. However, be okay to let go of a big backyard if you want to live in the city. Define what you want and what you absolutely need to be happy in your new home.

Keeping perspective in mind will help you find a home you love!