Suppose you are ready to buy a new home and don’t want to sabotage your home purchasing journey.
Make sure not to do the following.
Don’t quit or change your job if you plan to borrow funds from a lender. Having a stable source of income is essential, and you must have proof of employment that has been established for a minimum of 12 months for optimal rates.
Do not make any major purchases that may take away from the funds needed for your home’s down payment or just overall cash flow for lender consideration. In addition, you don’t want to make a purchase that requires additional financing. Borrowing at this time will increase your debt to income ratio and could cause complications in qualifying.
In advance of purchasing your home, you will want to get pre-qualified. It is essential to not withhold from your lender but be honest with them about your financial position. By providing the correct information regarding your financial situation, you will be able to receive a purchase price range to share with your realtor. Share any commitments from child support, alimony, wage garnishments, payroll deductions, etc. Also, make sure no one pulls your credit but your lender. Hard credit checks can impact whether or not you can borrow.
Also, you may have someone wanting you to co-sign on their loans or debts, but if you plan to buy a home, don’t! You won’t want to risk not being a viable borrower by increasing your debt-to-income. If someone lapses on their payments and you are responsible, this can directly impact your ability to access lending.
These tips are relevant for anyone purchasing real estate, whether you are a first time home buyer, wanting to buy a new home or investment property.
Once you decide to buy it, we want it to go smoothly! This new-age market is new to us all, but we understand what it takes to mitigate the purchasing process and are happy to -position you for success. Give us a call at 307-635-0303 or visit us when you are ready to buy. We are pleased to help.