Blog > 10 Commandments of Home Buying: Ensuring a Smooth Journey to Closing
Navigating the path to homeownership is an exhilarating journey, but the period between having your offer accepted and closing on your dream home is critical. Tracy Mathis, the esteemed owner and broker of Southern Homes Realty, shares invaluable advice to prevent buyers from jeopardizing their home purchase after going under contract. Drawing on years of experience, Tracy outlines the 10 commandments of home buying—a guide to keeping your transaction on track.
- Maintain Your Employment Status
Changing jobs, becoming self-employed, or quitting your job can be red flags to lenders. Stability in your employment history is crucial during the home buying process.
- Resist Major Purchases
Tempted to buy a new car or van? Think twice. Large purchases can alter your debt-to-income ratio, potentially disqualifying you from your home loan.
- Manage Your Credit Carefully
Now is not the time for new charge cards or falling behind on accounts. Keep your credit in check to ensure nothing derails your financing.
- Safeguard Your Closing Funds
Spending money earmarked for closing can lead to a last-minute scramble to secure funds. Keep your closing money untouched and in the bank.
- Be Honest About Your Debts
Omitting liabilities from your loan application can cause problems down the line. Transparency with your lender is key to a smooth process.
- Hold Off on New Furniture
It may be tempting to start decorating your new home, but purchasing furniture on deferred payment plans can impact your loan approval.
- Limit Credit Inquiries
Additional credit inquiries can affect your credit score. Limit inquiries to those necessary for insurance purposes only.
- Avoid Large Deposits and Withdrawals
Significant changes in your bank account can raise questions. Consult with your lender before making any large deposits or withdrawals.
- Keep Your Bank Accounts Consistent
Switching banks or accounts can complicate the verification process. Stability is your friend during home buying.
- Don't Co-sign Loans
Co-signing for another loan can increase your debt-to-income ratio. If you've already co-signed, ensure your lender is aware to include this in your preapproval considerations.
By adhering to these 10 commandments, buyers can significantly enhance their chances of a seamless closing. The journey to homeownership is filled with excitement and anticipation, but it also demands careful financial stewardship during the closing process.
If you're on the brink of buying your dream home, remember that the decisions you make now can have a lasting impact on your ability to close. For more insights and guidance through every step of the home buying process, reach out to Tracy Mathis and the team at Southern Homes Realty. Together, we can make "SOLD" your favorite word, too.
๐ Call or Text me @ (225) 268-1110
๐ง Email me @ CallTracyMathis@gmail.com
๐ Visit My Website: www.Movingto225.com
๐ Located at: 8801 Bluebonnet Blvd 1A, Baton Rouge, LA 70810
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Tracy Mathis
Broker Associate | License ID: 995680747
Broker Associate License ID: 995680747