The Don'ts of Buying a Home: Avoid These Common Mistakes
The Don'ts of Buying a Home: Avoid These Common Mistakes
Purchasing a home is a significant financial decision, and making the wrong move can jeopardize your loan approval. At Pacific Northwest Home Loans, we want to ensure your homebuying journey is as smooth as possible. Here are some key things to avoid when buying a home.
1. Failing to Provide Accurate Information
If you've recently changed your name due to marriage or another reason, let your lender know immediately. When we pull credit reports, discrepancies in names can create unnecessary delays. Providing accurate and up-to-date information from the start will help streamline the loan approval process.
2. Changing Jobs During the Loan Process
Switching jobs before your loan funds can be a major red flag for lenders. Consistent employment history is crucial for loan approval, so avoid any job changes until after your loan has closed.
3. Taking on New Credit or Debt
Between getting your home under contract and the loan funding, do not open new credit lines, take on additional debt, or make large purchases on credit. This includes new car loans, boat loans, or financing furniture. Lenders conduct a soft credit pull within 10 days of closing, and any new debt can impact your loan qualification.
4. Opening New Credit Cards
Even if you're offered a tempting 0% interest promotion, do not open new credit cards during the homebuying process. This can alter your debt-to-income ratio and put your loan approval at risk. Wait until after your loan has been funded before making any major financial changes.
5. Delaying Responses to Lender Requests
During the loan process, your lender may request additional documentation, such as income verification or bank statements. Failing to respond promptly can cause delays in closing. Stay proactive and provide any requested information as soon as possible.
6. Making Large Cash Deposits Without Documentation
If your down payment includes money from a personal safe, a cash advance from a credit card (which is not allowed), or a gift from family, inform your lender. All funds must be properly sourced and documented to ensure compliance with lending guidelines.
Final Thoughts
The homebuying process requires careful financial planning. By avoiding these common mistakes, you’ll increase your chances of a smooth and stress-free closing. If you’re ready to buy a home or have any questions, contact Pacific Northwest Home Loans today. We’re here to guide you every step of the way!
