Here Are Five Mistakes You Don’t Want to Make When Buying a Home
Many homeowners have received our assistance at Neighborhood Escrow during the home-buying process. When escrow is closed and everyone receives the keys to their new home, we love to see how happy everyone is.
But we have also witnessed folks making grave errors. We have listed five of the largest blunders we have observed in an effort to stop future clients from making the same errors. Call 310-378-2456 if you wish to open escrow or if you have any inquiries.
It happens all the time: someone decides to buy a house, and then they decide to get a new job. Even if the new job pays more than the previous one, a lender may view this as a high risk. They prefer borrowers who have been with the same business for at least two years. This would not entirely make it impossible for you to obtain a loan, but it might make it more difficult or result in inferior terms.
We advise waiting to change employment until you obtain loan approval; even then, speak with your loan officer before accepting the new position.
Changing your debt-to-income ratio
The proportion of a borrower’s monthly income to their monthly debt is one of the most crucial criteria a lender takes into account when determining whether or not to grant a loan. While you are in the process of purchasing a property, avoid making a significant purchase. This is true even if your loan has already been authorized; as closing day approaches, your lender might run another check on your financial situation. You can lose your eligibility for your loan if you take out a car loan or another sizable debt.
Opening a new credit card
Even if you don’t make any purchases with a new credit card, just the act of opening it will have an impact on your finances and credit score. Even having your credit checked by the credit card company may lower your credit score. We just advise delaying opening these accounts until the loan has closed.
Not communicating with your escrow officer
You should communicate with your loan officer and escrow officer frequently. You should always be informed of the deadlines so that you may be prepared for any unforeseen problems that may arise. Make sure your lender does as well. You can rely on Neighborhood Escrow to keep you informed.
Getting behind in payments
Just before you purchase a home, it can be simple to unintentionally get behind on your payments. Why? because you’re busy and the situation is stressful. If you are simultaneously buying and selling, this may be double true. A single late payment, though, may cost you thousands of extra dollars in interest charges. In order to avoid last-minute surprises, keep track of your bills.
At Neighborhood Escrow we have seen it all and we are here to help our clients avoid these and other mistakes.