Don’t Do These 5 Things Things When Buying a Home
Bergen County Real Estate Show #7
No Major Purchases
And the first thing that you’re never going to want to do is make big purchases. You don’t want to buy a car you don’t want to buy all the furniture that you might need for your home you don’t want to go on a big trip or pay for a big trip. What that does is it brings up red flags for your lender that you’re spending money more than what you should and you might not have the money to purchase the home when the time comes. So always avoid any major purchases. Obviously you need to continue to do the things that you’re doing. Paying your rent paying for food and all the things the expenses that you already have would avoid any big expenditures when you’re purchasing a home.
No New Credit
The second thing that you’re not going to want to do is take out new credit or close any
credit. So when you open up new lines of credit it’s going to be a red flag for your lender that you might be overextending yourself. The other side of it is you don’t want to close any credit. So if you have any bank accounts and you have any credit cards or any lines of credit out there you don’t want to close them without talking to your lender. Now your lender may suggest that you close certain things but that’s a discussion you want to have with that person so you understand what you’re doing and you’re not closing out anything that may actually adversely affect your credit.
No Major Withdrawals
The third thing that you’re not going to want to do is take out any major withdrawals. Again anything that you’re typically doing anything that you have to pay for on a typical basis that’s fine. But any major withdrawals again are going to be a red flag for your lender that you’re taking that money and spending it somewhere.
No Major Deposits
So no major withdrawals and no major deposits without talking to your lender. So there are situations where you can get a gift from family but you’re going to need to show where that money is coming from. So you’re going to need a letter from that person and you may need to show where that money is coming from as its transferred from one bank to another. So major withdrawals major deposits are things that you need to talk to your lender about before doing.
Don’t Get a New job
And the last thing that you’re never going to want to do when you’re purchasing a home is changing jobs. So when you’re doing your mortgage application they’re going to look at your employment history and they’re going to want to know that you’ve been at that job for a certain period of time to show that you’re going to have that employment and that income while you’re purchasing the home. If you have to change jobs in between talk to your lender about it be upfront. It may mean that you need to slow down your buying process and wait until you have enough time at that job to be able to borrow and purchase a home.
So thanks for watching episode 7 of the bergen county real estate show where we discuss the things that you should never do when you’re purchasing a home. If you like the information or you know anyone that could benefit from this information please feel free to share this with anyone who might benefit. If you’d like to catch the rest of our episodes you can find them at BergenCountyRealEstateShow.com or we share them on social on facebook and instagram at @gibbonsrealestate. I hope you enjoyed this week we’ll see you in the next video.
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