A Few No No's When Purchasing Your First Home
When you choose to buy a home for the first time, this is one of the biggest decisions you can make in life. You should be prepared and understand what to expect. That being said, there are a few actions you should AVOID making when purchasing your first home. Keep reading this week's blog to find them out. For a mortgage lender at the Lake of the Ozarks, you can count on to walk you through the entire mortgage process and put you at ease, call MHQ - Mortgage Headquarters. We can be reached at (573) 302-9990.
REFRAIN FROM CO-SIGNING ON ANY LOANS.
By co-signing, you take on all the risk if the loan is not repaid. If your co-signer defaults, you'll be responsible for making payments or run the risk of being sued since your name is on the loan, too. Plus, co-signing can make it difficult for you to obtain a loan for yourself when you need it.
KEEP YOUR CURRENT BANK ACCOUNT.
Switching bank accounts before closing on your loan could make it harder for lenders to prove your income or review your debt-to-income ratio. They could require you to obtain old statements from your previous bank account. This could take time, which means you could lose out on your window of opportunity.
CONTINUE TO KEEP YOUR MONEY SAVED FOR THE DOWN PAYMENT AND AVOID SPENDING IT ON ANYTHING ELSE.
The money you have set aside for your down payment is vital to the purchase of your home. Don’t blow the money you’ve saved up for a home on anything else! If you get to the closing table and don't have the down payment you've committed to, your lender may decide to pull the loan completely, meaning you no longer have funds to close the deal.
KEEP MAKING YOUR PAYMENTS TO EVERYTHING ELSE ON TIME AND AVOID BEING LATE.
Your loan approval will depend on your ability to pay your bills in a timely manner. If you've got a history of late payments or missing payments, a lender is less likely to be able to qualify you for a loan. Also, late payments of any sort can decrease your credit score, increase your home loan interest rate, delay loan closing, or cause loan denial.
KEEP YOUR JOB AND AVOID CHANGING CAREERS.
It's your responsibility to make sure you have a steady paycheck to go with your steady mortgage payment, and lenders WILL check your employment and income! If they can't verify that you have a steady income that is sufficient enough to cover a monthly mortgage payment, your chances of getting a loan approval are slim.
We hope you found this blog enlightening and helpful if you are considering buying a home. If you have any questions, please feel free to give us a call. We can be reached at the phone number listed below. We are also constantly posting helpful pieces of information regarding applying for mortgages on our social media platforms. Follow us on them by clicking on the links below.
A Few No No's When Purchasing Your First Home
REFRAIN FROM CO-SIGNING ON ANY LOANS.
By co-signing, you take on all the risk if the loan is not repaid. If your co-signer defaults, you'll be responsible for making payments or run the risk of being sued since your name is on the loan, too. Plus, co-signing can make it difficult for you to obtain a loan for yourself when you need it.
KEEP YOUR CURRENT BANK ACCOUNT.
Switching bank accounts before closing on your loan could make it harder for lenders to prove your income or review your debt-to-income ratio. They could require you to obtain old statements from your previous bank account. This could take time, which means you could lose out on your window of opportunity.
CONTINUE TO KEEP YOUR MONEY SAVED FOR THE DOWN PAYMENT AND AVOID SPENDING IT ON ANYTHING ELSE.
The money you have set aside for your down payment is vital to the purchase of your home. Don’t blow the money you’ve saved up for a home on anything else! If you get to the closing table and don't have the down payment you've committed to, your lender may decide to pull the loan completely, meaning you no longer have funds to close the deal.
KEEP MAKING YOUR PAYMENTS TO EVERYTHING ELSE ON TIME AND AVOID BEING LATE.
Your loan approval will depend on your ability to pay your bills in a timely manner. If you've got a history of late payments or missing payments, a lender is less likely to be able to qualify you for a loan. Also, late payments of any sort can decrease your credit score, increase your home loan interest rate, delay loan closing, or cause loan denial.
KEEP YOUR JOB AND AVOID CHANGING CAREERS.
It's your responsibility to make sure you have a steady paycheck to go with your steady mortgage payment, and lenders WILL check your employment and income! If they can't verify that you have a steady income that is sufficient enough to cover a monthly mortgage payment, your chances of getting a loan approval are slim.
We hope you found this blog enlightening and helpful if you are considering buying a home. If you have any questions, please feel free to give us a call. We can be reached at the phone number listed below. We are also constantly posting helpful pieces of information regarding applying for mortgages on our social media platforms. Follow us on them by clicking on the links below.
Mortgage Headquarters of Missouri, Inc
4824 Osage Beach Parkway, Suite 1
Osage Beach, MO 65065
Office: (573) 302-9990
Toll Free: (888)799-1206
Fax: (636)648-9917
NMLS # 1229111
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