Things You Shouldn’t Do When Buying a Home

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Things You Shouldnt Do When Buying a Home
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When you think about buying a house or you make a
decision, you consider setting a budget, saving
for a down payment, building your credit, looking
for the right real estate agent in Cranbourne or
anywhere in the nearby suburbs, talking to
people, engaging in negotiations, and conduct
research. You dream about the new house, things
you want, dream of the change in lifestyle, and
a lot of other things. But what most people fail
to consider some of the important day- to-day
factors that go along with the daily routine. If
ignored can have a detrimental impact on the
regular lifestyle. Let us see what all you should
avoid when considering home buying.
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Do Not Change Jobs
When the loan process begins, it is suggested to
not take any risk with your current job. Do not
change it, or quit it, or even start a new
business. This you must neither do before nor
during the loan process. The reason is that your
mortgage lender craves for your job stability.
Your source of income should be reliable. If you
consider changing your job before you close on
your new home, it might send up red flags. You
should neither quit a job too during the process.
That would not go really well. Lenders would
want to see about 2 years of tax returns. Do not
risk your home buying process. Take calculative
decision.
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Do Not Lie While Applying for Your Loan
Lie only if you want to pay heavy penalty because
lying is considered as a loan fraud. If you lie
at any point, not only will it be wrong but also
against the loan rules and policies.
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Avoid Spending Extra Like Car Buying
There are three main categories which a lender
will consider when approving you for a loan
Credit, Assets, and Debt-to-Income Ratio. If you
purchase a new vehicle, you are likely to affect
all of the three items.
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Do Not Hop from One Bank to Another
Everything is verified in the beginning of the
loan process and just before closing. If you
change the bank, it will lead to delay as you
and your lender will have to engage in more
paperwork.
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Do Not Apply for A New Credit Card
New inquiries for credit confuse mortgage
lenders. Any confusion in the process will not
only lead to long delays but can also be a huge
hurdle in the home buying process. Even before
closing the deal, your credit score will be
checked. This is done to make sure that
everything is same when approved. Just because
new credit translates into a higher risk to the
lender, it is the best to wait till the deal is
finalized.
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Do Not Close Current Credit Accounts
This may sound good and relaxing but when buying
a dream home, it would not be worthwhile
especially when you try to get a mortgage
because it can lower your credit score. If you
consider closing your credit account, you reduce
your available credit.
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Do Not Delay Bill Payments
Paying bills on time is not just a good habit but
a track record of making timely payments helps
build trust. It shows your accountability and
also helps you secure a mortgage loan without
any hassle.
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Do Not Move Around Money
Lenders would see the money for down payment in
your account for at least two months. So, if you
have some amount anywhere else or in some other
bank account, it would be better to put into the
account that money lender will be looking at.
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Do Not Panic if the Appraisal for Your Home is
Low
As said above, emotions should not run and
dictate your decisions. The house you are about
to sell may get an appraisal lower than the
sales price. This can create a problem but this
is not the end of the world. Since getting an
appraisal is a contingency for obtaining loan,
the seller will have to drop the price of the
home or you may have to step out of the
contract. If such situation arises, you may even
have to pay more for the home or even meet
somewhere in the middle with the seller.
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Do Not Engage in the Home Buying Process Alone
Home buying is a big decision. If it is taken by
being under the guidance of real estate agents
in Cranbourne, all your burden will be taken
off. Real estate agents are the professionals who
deal in matters of property. The best part of
having a real estate agent by your side is that
they take care of everything right from the
scratch. You do not have to worry about
maintaining documents, finalizing deals,
attending open houses, auctions, or anything
else. They make your journey of home buying easy
and smooth. The process of buying a home is
usually lengthy. It can take months to finalize
and settle a deal. But with real estate agents
in Cranbourne, or Hampton Park, you may even get
the home of your dreams in a few weeks. Yes! If
you do not believe, contact Jasmine Real Estate
agents
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Get In Touch

• PO Box 137 Lynbrook Victoria
• 0425843786
• carlton_at_carltonvaz.com.au
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