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Home Purchase Tips For 20171.09.2017

Are you planning on purchasing a home in 2017?

The FHA limits will increase the loan limit "floor" from $271,050 to $275,665 in 2017. If you are debating whether to take out an FHA loan, 2017 may be the perfect year to do so. If you are thinking about starting the mortgage loan process, there are some tips that you will need to keep in mind. Changes in your credit, debt, income assets, or job during the process might jeopardize your ability to buy that house.

Tip #1 Do Not Apply For Credit.

After you receive the initial contract to buy a house, do not apply for credit of any type. Applying for credit can change your credit score. If your credit score changes during the home buying process, your rate lock could change or the fees associated with closing the house could change. It’s best to hold off on applying for any credit at all until after the home buying process is complete.

Tip #2 Refrain From Altering Your Credit

While it is not a good idea to apply for credit, it is also not a good idea to dispute credit or close accounts. If you do this, the mortgage lender will not be able to run automated underwriting and the loan process may be paused until those accounts are taken out of dispute. Closing any credit accounts could change your credit score, which again could jeopardize the home buying process.

Tip #3 Avoid Moving Money Around

Many times mortgage lenders want to see banks statements, etc. If you are moving money around from one account to another, most mortgage lenders will know something doesn’t add up. Moving money can cause some major headaches for you and the mortgage broker.

Tip #4 Wait To Change Jobs

Changing jobs before you start the mortgage process is certainly okay, but once the process starts don’t change jobs. Most banks and lenders typically want you to have been employed at least 30 days. Some lenders ask for a paystub, a job offer letter, and employment verification before you close on the home. The best choice is to keep your current job until you close on your home.

Tip #5 Postpone Shopping For Your Move Until You Actually Close

Call it superstition if you will. It just isn’t good luck to be shopping for your moving company and planning your move before you close on your home. It’s just a recipe for something to go wrong with the loan process. Wait until you sign your final documents to hire the moving company. The same thing goes for shopping for furniture for the new house. Spending money with credit or from your checking account can jeopardize the mortgage process. Buying something small and special to keep you motivated through the process is certainly acceptable, but buying a couch or bed without room to put it in is just not practical.

Follow the tips above for a smooth home buying experience in 2017. Don’t jeopardize your mortgage by making one of the mistakes listed above. Either way, please contact us at Mortgage Options, Inc. for a broker that can help guide you through the entire process.