Buying a home can be very exciting but also stressful. The key is to start the process and be extremely patient. As a seasoned, experienced and competent broker, I am confident that I can assist in this area. Either you are a first timer and have zero knowledge of the process or working on your second or third home, Lewis Residential should be your first and last call. Here are a few DO's and DON'Ts when starting the home buying process;
1. Check your credit report
There are several sources that can be used to receive a free credit report and preferably including the scores. But understand that the mortgage industry uses a different source when calculating your scores. A free source could have you at 660 but the lender may possibly pull a 620. The key is to find out what's on your report that affecting your scores positively and negatively.
2. Get a Pre-Approval
Receiving a pre-approval from a preferred lender is a MUST before actively searching for a home. This not only gives us the re-assurance you can actually buy but also dictates your buying power. Even if buying now isn't a possibility, we can work together on repairing your credit. Remember, a NO today is not a NO forever. If you don't have a lender in mind, I can refer you to the right one for your particular situation.
3. Don't Change Jobs
There are many reasons why this is a NO NO but the main reason is that the lenders looks down on this action. Income and job security is a must when being approved and they both will be verified. Changing jobs could complicate this requirement. Let's have a conversation first if this is a possibility.
4. Do Not make any late payments on current debt
Just because you have received the much needed pre-approval letter, the lender will re-assure your credit status during and just before closing on the home. Making just one late payment can drop your scores dramatically and keep you from closing on your new home while your file is in underwriting. Paying late on any debt that is reported on your credit is NOT an option.
5. Do Not buy anything that requires using your credit
This includes your current credit cards, applying for new credit for furniture or a car and definitely DO NOT go get any cash advancements. This simple task can affect your debt to income ratios and keep you from closing on your home. The only thing that is acceptable when using your credit is getting home insurance quotes.
6. Do Not let outside influences dictate our working relationship
Many times future home buyers make the mistake of listening to others that have bought homes previously. Understand that all home buyers are not created equal. What they qualified for may not be your reality. How they acquired their financing may be a little different than your process. How and where they found their home can be all together different on how we find your home. Just trust the process and me that I have your best interest in mind and your happiness and satisfaction is my priority. We must be a team and keep ALL lines of communication open.
Do Not give up
If there's a Will, there is a Way. As long as your efforts are geared towards establishing homeownership, it is my unwavering duty to get you to the finish line, no matter how long it takes. Buying a home is not an easy task and at times frustration can and will set it. Even after we find the perfect home, the lender will ask for everything under the sun. I won't be surprised if they don't start asking for DNA. Just stay positive and patient and realize your dream is just around the corner.