<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=518418718317195&amp;ev=PageView&amp;noscript=1">

Homeside: Your Modern Mortgage Blog

5 Mistakes To Avoid While Buying a Home

Posted by Rachel Guthrie on December 20, 2016

Are you thinking of purchasing a home someday soon? Here are a few things you absolutely should not do if you want to get approved for a home loan in the near future.

1. Don’t ignore your credit profile

This is the most important advice you might hear all week. Hide-and-go-seek does not apply to your credit score. Just because you don’t look at it, doesn’t mean it’s not there. Monitoring it often helps you to have a good understanding of how it is changes based on your decisions and enables you to check any incorrect information that you will need to amend before moving forward and buying a home.

2. Don't co-sign a loan for anyone 

This will increase your debt-to-income ratio. It’s not easy to turn down a close friend. Explain to them how it will negatively impact your current loan application, and they should understand.

3. Don’t switch banks

You want every aspect of your financial history to show stability, including where you bank.

4. Don’t let your credit card get you in trouble

Don’t be late on any credit card payments, and make sure you are not spending excessively during this time period. Remember: you want to show the lender you are a responsible money manager.

5. Don’t change jobs

While your loan request is under review, do not change jobs, quit your job, or become self-employed. Think stability.

Check Out Your Financial Profile

Subscribe to Email Updates

Recent Posts