Don’t Kill Your Real Estate Deal
Filed under: Temecula Real Estate
Did you know that there are things that can blow up your loan while you are in escrow? If you are buying or selling a home, then it is important that you and the other party stays involved in the financing process to avoid some of these common mistakes. Here are a few things that you should avoid:
New Credit Lines
The lender will check your credit score during the pre-approval process, but you could harm your credit profile by taking out new financing during the process of buying a home. For example, it is not a good idea to buy a new car, get a new credit card, or buy new furniture at the same time that you are trying to buy a property.
These purchases will have a negative impact on your credit score and your debt-to-income ratio, which are both factors that can have an effect on your ability to get the financing that you need. Worst case scenario: the loan is denied and you are out of luck.
Avoid Unnecessary Purchases
Since the lender is keeping a close eye on you during the whole process, it is best to refrain from any unnecessary purchases during this time. Jumping into other loans or credit cards could increase the risk that your funding will be denied.
Working with a Reputable Lender
Choosing the right lender can have an influence on the closing process for your new property. Not only will a reputable lender ensure that you close on time, but they will help you to manage your stress along the way.
Payment History
Also, consider your payment history. Ensure that all payments are made on time, especially during this period before buying a home. If a new late payment shows up on the credit report right before the close, then it could have a negative impact on your loan.
Job Change
If possible, it is best to avoid a job change when you are buying a home. But, if the situation requires this timing, then make sure that you talk with your lender for help with the transition.
Your lender and real estate agent are on your team, trying to help to make the process as smooth and easy as possible. If you need help with your home purchase, then call, text, or email me anytime: (951) 473-0390 or [email protected]