As a Denver mortgage broker, Mortgage Maestro helps arrange loans for first time buyers as well as VA loans, physician loans, and even conventional mortgages. We have seen plenty of success stories over the years – and a few sad stories, too. Many of those sad stories have been due to mistakes made by buyers during the home-buying process.
The good news in all of this is that many of these mistakes are avoidable. You just need to know what they are. This post will key you in on five of the biggest mistakes homebuyers make. If you can avoid all of them, you should be in pretty good shape all the way through closing.
Here are five things you should not do when trying to buy a home:
1. Do Not Take on New Debt
If there is one mistake that stands above all the rest, it is taking on new debt in the months leading up to closing. Let us look at this from two angles, beginning with new debt taken on before applying for mortgage. It is just a bad deal.
Mortgage brokers and underwriters take a look at your current debt load to determine how much you can afford to borrow. Taking on new debt prior to applying for a mortgage only limits that amount. In some cases, new debt can prevent you from getting a mortgage at all.
The other angle is taking on new debt after you have submitted your mortgage application. Know this: even a pre-approved mortgage needs to go through the underwriting process. An underwriter discovering new debt after the fact is likely to deny the mortgage.
2. Do Not Take a New Job
Next, do not take a new job while trying to buy a house. Mortgage lenders want to see job stability because that equates to income stability. Taking a new job, even if it pays better, jeopardizes your chances of making it to closing. Stick with the job you currently have. After you have closed and moved in, then consider looking for something new.
3. Do Not Move Your Money Around
There are valid reasons to move money around by doing things like changing banks or transferring old credit card balances to new cards. But the time to do those sorts of things is not while you are trying to buy a house. Moving money around raises red flags to underwriters. Again, underwriters want to see stability.
4. Do Not Leave Your Mortgage Lender Waiting
Mortgage approval is a bumpy process. It takes time, and it often means furnishing documents or answering questions throughout. Whatever you do, don’t leave your mortgage lender waiting. If the lender requires a document, submit it as quickly as you can. Likewise, answer any questions you might be asked immediately. If you leave your lender waiting, you are only slowing down an already slow process. Delays could jeopardize closing if they continue for too long.
5. Don’t Buy Without an Attorney
Finally, do not try to buy a house alone. This is to say that you need a real estate attorney to provide advice and guidance. It is also best to have your own attorney represent you at closing. Using the seller’s attorney doesn’t offer you maximum protection.
Buying a home is rarely easy. Ditto for obtaining a mortgage. But with the right mortgage broker, a solid attorney, and a real estate agent you can work with, you can make it through the process virtually unscathed. Just be sure to avoid the types of mistakes that could jeopardize everything.
Contact us today to discuss your loan options with a trusted Colorado mortgage broker or apply online through our site.
