If you are looking to buy a home in the coming months you will be faced with a ton of decisions. We all know that the "process" can sometimes be dizzying so I will try and clear the cobwebs by pointing out some basic logic and common sense pitfalls that you may not realize until it is too late. Of policy all of the guidance below applies for buy transactions but if you are reasoning of refinancing your current mortgage please effect these same recommendations.
Credit check
The day that you think you want to buy a house you should experience your mortgage planner to have them reveal your credit. You don't want to be caught off guard with a below median prestige narrative and of policy the great your prestige is the more options you will have available. By reviewing your prestige months in expand with your mortgage planner you will have time to repair any issues before you well have to apply for a loan. Of course, before you permit them to run your prestige make sure you have opted out of the trigger lists so your personal information and prestige score does not get sold.
Incur debt
Today it is easier than ever to make purchases with your prestige cards. This is regularly done out of necessity and the ease of their use but often just to keep up with the Joneses when you don't have the cash to pay in full. If you are contemplating purchasing a new home within the next few months try to avoid any items that you will not be able to pay off in full when the statement arrives. While this is all the time the ideal way to pay for things, ensure that your prestige cards have a zero balance before you begin to quest for a new home.
Cars
The guidance above holds true for car leases and loans. If you can avoid it do not make any new purchases or upgrades until after you close on your new home. If you have to finance a new car because your current lease is due to expire please counsel with your mortgage planner before incurring this new loan as it could knock your debt-to-income ratios out of the park; unlike baseball this not a good thing.
Maintaining reserves
This is a big issue that has come to be even more important as lending requirements have gotten tougher over the past year. You want to build your reserves (aka savings and investments) to have at least three months of your total expenses and preferably six months of expenses After your down payment and all of your end costs are paid. Having less than this will cause most lenders to deny you a loan and of policy this will put you in a shaky situation should you lose your job or come to be disabled. While most lenders will permit this whole to be held in withdrawal accounts my hint is for this to be help in non-qualified liquid accounts that you can access without incurring any penalties.
Move money around
It is tempting to turn bank accounts or speculation accounts for great online services and/or interest rates but here again you should wait until after you close on your new house. Lenders like to see a history of at least two months worth of bank statements. If you move money around it will make it harder for the underwriters to track and you don't want to raise any undo scrutiny with them. If you well must turn banks before a end then ensure that you make copies of all checks and deposit slips in order to trace and source the funds. Of policy the lender will require copies of statements from your old bank and the new one to cross reference your story so set these aside.
Change jobs
Lenders like to see a steady employment history. If you are going to turn jobs before you buy your next home ensure that it is a move up in pay and/or responsibility. Lateral moves are okay but they should be in the same industry. If you are going to be manufacture a move please advise your mortgage planner about this during your first meeting or as soon as you begin to discover the turn so she can plan accordingly and help direct the information to the underwriter.
Wait until last minuscule to apply
Like all things else in life, if you wait until the last minuscule to apply for a mortgage, you will not give yourself enough time to study and ensure that you get the best agenda for your family. When purchasing a home, you should start the process with your mortgage planner-not the realtor. After you and your mortgage planner have analyzed your goals, dreams and finances you then enlist a realtor with a mortgage plan in hand to help you find your home.
Your realtor will also appreciate this; she will know that you are suited to be looking at the price point you requested. By doing it the other way around (as most do), you will be rushed into a home-buying decision and act out of impulse or emotion, and not from sound thinking. On refinance transactions most people wait until they can no longer pay their bills or late notices start to pile up.
Straddling two houses
This is becoming a big downfall for many people across the country as they bought their new home reasoning they would sell their current home. The qoute for most is that they do not have the cash to carry two homes. My guidance is that if you are reasoning of buying a new home you should sell your existing one first. Now this may mean that you might have to rent for a while if you don't have a house lined up but that is much great than losing one or both in foreclosure because you could not afford to make the mortgage payments. That in turn will destroy your prestige and you know how important good prestige is.
Hopefully the above guidance is not a shock to you but unless you s l o w d o w n and analyze what you are doing you may unknowingly create a negative situation on your goals. If you are just beginning to think about buying a new home or refinancing your current mortgage, pick up the phone and call your mortgage planner today.
Make life happen and Take operate of your financial future; you will be glad you did.
Financial Mistakes to Avoid When Buying a HomeBasic Microcontroller Wireless Internet Camera Surveillance USB Cable Male To Male