There are a few financial steps that are encouraged and recommended when thinking about buying a house; there is also a legion of financial mistakes you definitely do not want to make when in the process of buying a house! Here are 5 financial mistakes not to make when buying a house.
1. Do not destroy your credit. Do not make other large purchases like a car, take out a student loan, get married and accrue that debt, or take an expensive vacation. All of these things can be really good, but when buying a house are major red flags to lending officers and banks that will be processing any mortgage or home loan applications that you will likely be submitting. Make sure the financial burden of buying a house is the only new debt on your plate and, before you even begin thinking about buying a home, make sure any credit card payments or loans you are already paying back are in good standing.
2. Do not change jobs. There is a whole host of things that could go wrong with your employment and yes, bad things happen: sometimes we are laid off suddenly and without warning. However, do whatever you can to make sure you are not changing jobs or planning to quit anytime during the process of buying your house. Any sort of financial instability (even if you have another job lined up) makes banks and lenders nervous and more likely to shelve your home loan application for someone who looks less like a financial risk.
3. Do not waver between multiple properties. Find one you like and one you can envision being your home for many, many years to come and stick on that path. The further you go down the path of pursuing multiple housing arrangements the more money you will have to pay to realtors and the more time you will spend cleaning up remnants of other housing searches when you have indeed made a final decision.
4. Do not make major life decisions. Buying a house is a major life decision: one is enough for now! If you are getting married or have recently gotten married, congratulations. Make sure to be able to explain that and any other unusual financial activity you may have had (large expenditures, a new credit card, etc.) to your loan officer so they are aware that this has occurred in your life. If you are planning on going back to school, taking a major vacation, or making another large purchase it might be prudent to wait until after all the house buying and financial aspects of that have settled before jumping to another thing.
5. Do not make the mistake of not having saved enough. Make sure you have a little nest egg saved for such an occasion as buying a house and that it is significant to cover certain aspects of this process. If you have no credit, bad credit, or a troubled housing history you may have difficulty getting loans and other help with buying a home.
About the Author:
Peter Thomas works for Aruba Villa Vacation Homes and loves to travel. He loves to write, Aruba Vacation and Accommodation are his topic of interest and he finds immense pleasure in writing article about villas in Aruba and luxury villa rental Aruba.
Article Source: http://EzineArticles.com/?expert=Peter_Wilson_Thomas
Article Source: http://EzineArticles.com/8330132
1. Do not destroy your credit. Do not make other large purchases like a car, take out a student loan, get married and accrue that debt, or take an expensive vacation. All of these things can be really good, but when buying a house are major red flags to lending officers and banks that will be processing any mortgage or home loan applications that you will likely be submitting. Make sure the financial burden of buying a house is the only new debt on your plate and, before you even begin thinking about buying a home, make sure any credit card payments or loans you are already paying back are in good standing.
2. Do not change jobs. There is a whole host of things that could go wrong with your employment and yes, bad things happen: sometimes we are laid off suddenly and without warning. However, do whatever you can to make sure you are not changing jobs or planning to quit anytime during the process of buying your house. Any sort of financial instability (even if you have another job lined up) makes banks and lenders nervous and more likely to shelve your home loan application for someone who looks less like a financial risk.
3. Do not waver between multiple properties. Find one you like and one you can envision being your home for many, many years to come and stick on that path. The further you go down the path of pursuing multiple housing arrangements the more money you will have to pay to realtors and the more time you will spend cleaning up remnants of other housing searches when you have indeed made a final decision.
4. Do not make major life decisions. Buying a house is a major life decision: one is enough for now! If you are getting married or have recently gotten married, congratulations. Make sure to be able to explain that and any other unusual financial activity you may have had (large expenditures, a new credit card, etc.) to your loan officer so they are aware that this has occurred in your life. If you are planning on going back to school, taking a major vacation, or making another large purchase it might be prudent to wait until after all the house buying and financial aspects of that have settled before jumping to another thing.
5. Do not make the mistake of not having saved enough. Make sure you have a little nest egg saved for such an occasion as buying a house and that it is significant to cover certain aspects of this process. If you have no credit, bad credit, or a troubled housing history you may have difficulty getting loans and other help with buying a home.
About the Author:
Peter Thomas works for Aruba Villa Vacation Homes and loves to travel. He loves to write, Aruba Vacation and Accommodation are his topic of interest and he finds immense pleasure in writing article about villas in Aruba and luxury villa rental Aruba.
Article Source: http://EzineArticles.com/?expert=Peter_Wilson_Thomas
Article Source: http://EzineArticles.com/8330132
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