Buying a home is often an exciting journey, but it’s easy to feel unsure about what move to make (or not make). That’s where Supreme Lending comes in. Whether it’s your first home or your next one, our team is here to assist you. To help you get started, here’s a handy list of possible Do’s and Don’ts to keep in mind along the way.
The Do’s: Steps to Keep the Process Moving Smoothly
- Get Pre-Qualified
Before you start searching for your new home, consider getting pre-qualified for a mortgage. This may help provide clarity on what you might be able to afford and establish a realistic budget. Plus, it may demonstrate to sellers that you’re a serious buyer, potentially giving you an edge in competitive markets! - Work with an Agent Who Represents Your Interests
Partnering with a qualified real estate agent who represents you is key to navigating the buying process. Working with an agent who focuses on your needs, rather than the seller’s, could help ensure that your interests are considered at every step. - Submit Documents Promptly and Completely
During the mortgage process, you’ll be asked to submit various documents to your lender. To avoid delays, it’s essential to provide complete and accurate paperwork as quickly as possible. Missing or incomplete documents may cause delays in the approval and closing process. - Maintain Timely Debt Payments
Continue making all debt payments on time during the homebuying process. Lenders often review credit history and payment behavior throughout the loan process to assess your financial reliability, and keeping up with your payments may help support your mortgage approval. - Expect a Final Credit Check
Just before closing, your lender may perform a final credit check to ensure your financial status remains stable. While this is a routine step, it’s important to stay mindful of your spending in the days leading up to your closing date to avoid any surprises. - Keep Saving Money
It’s wise to keep saving throughout the homebuying process. Unexpected expenses, such as closing fees or last-minute home repairs, may arise at any time. Having additional savings may help ensure you’re prepared for these potential costs.
The Don’ts: Avoid These Common Pitfalls
- Avoid Applying for New Credit Cards
It might be tempting to open a new credit card for the perks, but when you’re in the homebuying process, you should wait. Opening new credit accounts may impact your credit score and potentially delay mortgage approval. - Don’t Buy Furniture Just Yet
While it’s natural to be excited about your new home, resist the urge to make large purchases, like new furniture or appliances, until after the closing. Big-ticket purchases may alter your credit profile, potentially raising questions for lenders about your financial stability. - Avoid Changing Jobs
Changing jobs during the homebuying process may complicate things. Lenders value job stability, and any changes in your employment may prompt concerns about the consistency of your income. If possible, wait until after closing before making any job transitions. - Don’t Close Credit Accounts
It’s generally a good idea not to close any existing credit accounts during the mortgage process. Closing accounts may lower your available credit and may negatively impact your credit score. Keep your accounts open to maintain your credit history. - Don’t Spend Your Savings
It’s a good idea to keep your savings intact during the homebuying process. With expenses like down payments and closing costs on the horizon, dipping into your savings might leave you a bit short. Maintaining your savings may help ensure you’re prepared for the costs ahead. - Avoid Moving Money Without a Paper Trail
If you need to transfer money between accounts, make sure to keep clear documentation of the transaction. Lenders may request proof of where your funds are coming from, and failing to provide a clear paper trail may delay your mortgage approval. - Don’t Co-Sign Any New Loans
Co-signing a loan may seem like an act of support, but it might complicate your homebuying process. Co-signing a loan means you’re legally responsible for the debt if the primary borrower defaults, which may raise concerns for your lender. Avoid co-signing new loans while navigating the homebuying process.
Ready to Take the Next Step?
At Supreme Lending we’re here to help turn up the excitement and dial down the stress of buying a home, so you can focus on the fun stuff! We hope you’ll feel equipped to navigate the process with confidence and ease by keeping these Do’s and Don’ts in mind! In fact, be sure to bookmark this link so you can easily refer back to it when needed!
Give us a call today, and let’s talk through how we can help move closer to your homeownership goals!