10 Commandments Home Buyers Must Follow

There are a lot of emotions that go into buying a home excitement of course, disappointment (when an offer is not accepted), frustrating with all the paperwork needed, fear at the commitment, exhaustion while looking for the right one, and many other emotions that we don't expect.

The first thing is to be pre-qualified with a lender, then you know what you can afford and from there figure out what you are comfortable with as a house payment.  Once you have that knowledge you are now ready to start looking at homes that meet your needs and your financial goals.

During this process it is easy to forget all the things that your lender or realtor has told you and it is easy to make some very common mistakes.  These mistakes can be costly and even cause you to loose the ability to buy.  It is very important that if you decide to do anything that will change your financial situation always call your lender first. 

Here are the 10 Commandments of Home Buying:

1.  Thou shalt not change jobs, become self-employed or quit your job.  (You need to be able to show steady employment and steady income source)

2.  Thou shalt not buy any new vehicles.  (You must not alter your debt liability)

3.  Thou shalt not use your credit cards and run up debt beyond what you had when your lender first ran your credit for pre-qualification.  (Never use more than 30% of your line of credit and never fall behind on any payments) 

4.  Thou shalt not spend the money you have set aside for buying the home (down payment, closing costs, etc)  

5.  Thou shalt not omit debts or liabilities from your loan application.  (Remember your lender is your friend and the only way he/she can make sure you qualify for the loan is if he/she knows everything you owe.  Hiding things will only come up later in the underwriting process and by then it may be too late to fix it and could cost you a lot of money lost in the buying process) (Your lender and Realtor work together to protect your money but they can only do that if you are truthful with them)

6.  Thou shalt not buy furniture or any other major purchase.

7.  Thou shalt not originate any inquiries into your credit.  

8.  Thou shalt not make any large deposits without first checking with your loan officer.  (This includes any gifted money)

9.  Thou shalt not change any bank accounts or credit cards with out checking with your lender.  (Don't pay off, close, change or add to any of these accounts without checking with your lender.

10. Thou shalt not co-sign a loan for anyone.

Remember your credit, banking, and employment information must not change during the buying process. Wait until after closing on your new home to mak any changes.