When You Buy A House
It is expected that you have a good credit rating, and an adequate income when you buy a house. Most people do not realize that just because you have applied for the loan, and the loan officer has “approved” you and you have made an offer on a house and the sellers have accepted it does not mean that you can go spend a lot of money on a new car for instance or decide to get a new job in the process of buying a house.
Seven Tips When You Buy A House
If you are new to the search and in the market to buy a house, take a moment to review these tips.
1. Keep your job. Lenders are looking for stability.
2. Do switch banks. A strong banking history shows stability.
3. No big purchase. Financing another large purchase like a car could affect your income to debt ratio and disqualify you from a home purchase.
4. Pay your bills on time. You will need a record that you manage your money properly.
5. Lenders like to see that your down payment has been in your accounts for a few months. It is called “seasoning”
6. Be honest. Inform your lender of all outstanding debts and be truful about your income.
7. Do not buy something for someone else or guarantee a loan for someone. This could increase your debt to income ratio.