When you are getting ready to buy a home, you should make sure you follow some different tips and advice that will make the process easier and increase your chances of finding and getting into the right house without a problem. Here are some of the main things you want to keep in mind when you go to buy:
Don't try to open any new lines of credit – The time before you try to get approved for a home loan is not the time to try for new lines of credit. The more inquiries you put on your credit, the lower your score can get. Also, when you are approved for a new line of credit, it can make your score dip down under certain circumstances. It's too unpredictable and risky to try to apply for new lines and it will even change your DTI ratio which the lender will be looking at, so you should just avoid this altogether until you get into a house and have made it completely through the Escrow process.
Don't close your credit accounts – just as how you don't want to apply for or open new credit lines, you also don't want to close any. You never know how any changes such as these are going to affect the score, so the best thing for you to do is just to pay down your existing credit lines as much as you can while making sure you pay them on time, and don't make any other types of changes to your credit, including the closing or transferring of accounts.
Do not move money around without leaving a paper trail – When you are going to be buying a home, it will be important for your lender to be able to see how much money you are working with and prove where your money is coming from, as well as follow it in other ways. For this reason, you won't want to move any of your money around without leaving a paper trail. Doing so can possibly even jeopardize your chances of qualifying for the home loan you are trying for.
Don't change jobs right now – If you are even thinking about buying a home, you don't want to change jobs until you are in a new home. This is due to the fact that lenders will want to see you in the same position for at least two years in order to approve you for a home loan.
Consider going with a home loan company – A home loan company will help you by matching you up with a lender that will work well with you and get you a loan that works the best for your situation, as well as your desires for a home.