Buying your first home: mistakes to avoid after submitting your loan application
Congratulations! You’re ready to buy your first home. It is an exciting time, but also one of great learning. Many buyers discover that they may not be familiar with the home buying process. If you have just submitted your loan application, here are some tips to keep the process running smoothly:
Don’t apply for another loan, such as a car loan. You don’t want to have any changes to your credit status while your application is being processed. You should refrain from co-signing a loan for someone else or start a new loan process for yourself. These would both affect your credit score and possibly decrease the amount of money you are able to qualify for on your mortgage.
Make all other payments on time. Keep up with your credit card payments so your credit rating remains good. In addition, you will want to limit how much money you are charging to your credit cards or removing from your bank account. This will change your utilization ratio and may affect your loan application. Wait until after your loan has been processed to make large purchases such as furniture and appliances for your new house.
Make a calendar of when all of your monthly payments are due. This will help you plan your finances and keep an eye on when each payment is to be received by your creditors.
Hold off on large deposits. You may think it would be helpful to deposit a large sum of money in your bank account but it may actually result in a delay to your application being processed. Abnormal deposits will require that the source of the money be verified which can take time.
Wait to change jobs. If you have been considering a job change now is not the time to do it. A change in your job status means your loan application will need to start over again.
At 1st Alliance Lending we are happy to help first time buyers through the process. We realize that first time buyers are not familiar with the Do’s and the Don’ts of buying a home. Please contact us at any time with questions, so you can provide you the information you need for a successful first time buying experience.