Are You at Risk of Making Any of These Common Mistakes Home Buyers Make?
We have assisted numerous homeowners in the process of purchasing a property at Neighborhood Escrow. We love seeing everyone’s faces light up when escrow closes and they get the keys to their new home. We have, however, seen people make grave errors. In order to avoid future clients from making the same mistakes, we’ve listed five of the most common blunders we’ve encountered. Contact us at 310-378-2456 if you have any questions or want to initiate escrow.
Changing careers
We’ve all seen it: a person decides to buy a house and then immediately finds a new job. Even if the new job pays more than the previous one, a lender may view this as a high-risk situation. They prefer borrowers who have been with the same employer for at least two years.
This may not preclude you from receiving a loan altogether, but it may make it more difficult or result in harsher conditions. Before moving employment, we recommend waiting until your loan has been approved, and even then, speaking with your loan officer before committing to the new position.
Changing your debt-to-income ratio
The ratio of a borrower’s monthly income to their monthly debt is one of the most critical variables a lender examines when choosing whether or not to provide a loan. Make no major purchases while you are in the process of purchasing a property. Even if your loan has been authorized, your lender may review your financials again as the closing date approaches. Taking out a vehicle loan or another large debt might cause you to lose your loan eligibility.
Obtaining additional credit cards
Even if you never use a new credit card, the fact that you have one will have an impact on your credit score and finances. In fact, having your credit checked by a credit card business might harm your credit score. We recommend waiting until after the loan is closed to create these accounts.
Failure to maintain contact
You should communicate with your loan officer and escrow officer on a frequent basis. You should constantly be informed of the timelines so that you are prepared for any last-minute difficulties that may arise. You can trust Neighborhood Escrow to keep you informed; make sure your lender follows suit.
Bill payments falling behind
It’s all too easy to get behind on expenses shortly before you buy a house. Why? Because it’s a jumbled mess and you’ve got a lot on your mind. If you’re buying and selling at the same moment, this is double true. A single late payment, on the other hand, may cost you thousands in higher interest rates. To minimize last-minute shocks, keep track of your expenses.
