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Don’t Get Burned by Bad Decisions When Buying a Home

Don’t Get Burned by Bad Decisions When Buying a Home

We’re not only in the heat of the summer months, but we’re also in the heat of the hottest home-buying season around! So, how do you keep your cool once you’ve placed an offer on a home and you’re waiting to close?

Avoid doing these things to make sure your home-buying dreams don’t melt away this summer:

Don’t apply for more credit.

This means no major credit cards, no department store credit cards and no new cars. If you even come near the word “financing,” walk in another direction! Why? Applying for any kind of credit card can lower your credit score, which can lower your chances at getting a great rate when it comes to financing your home. If you have great credit, it probably won’t disqualify you from getting a loan, but why take the risk? When it comes to more credit, just wait!

Don’t close any credit cards.

Talk about the opposite end of the spectrum, right? Although you don’t want to open any new lines of credit when you’re buying a home, closing any credit cards also could negatively impact your credit score. Instead, do your best to pay off any outstanding balances and leave the cards open. Having a lower debt-to-income ratio will boost your credit score over time!

Don’t give yourself more to move.

Once your offer has been accepted on a home of your dreams, it is easy to want to start buying things to fill it. You know, some TVs, new furniture or even blinds. Again, practice a little patience here. There is no need to buy these big, hard-to-move items before you’re in your new home. That is, unless you want to create more work for yourself!

Don’t’ make a career change.

Most closing periods last 30-60 days. If you can avoid changing jobs during that period, do yourself a favor and please do. True, a better-paying job might seem like a better way to get financing for your home, but a career change could mean more paperwork that could delay your closing process.

Don’t wait until the last minute to pack.

Instead of focusing your attention on trying to change jobs during your closing period, use those 30-60 days to get rid of some clutter and start packing! Maybe you’re planning to hire a moving company, maybe you’re planning to make the move all by yourself. Whatever your plan may be, add “pre-packing” to it! You’re sure to be glad you did.

Don’t forget about extra costs. When you decided to buy a home, you probably started saving money to put toward your down payment. That’s awesome! But, the saving shouldn’t stop there. You’ve also got to account for closing costs, inspector fees and possibly the cost of buying down your borrowing rate. Once you hit your down payment goal, keep saving!

One final “don’t” when it comes to buying a home? Don’t stress out so much that you don’t enjoy the home-buying process. Remembering all of these things “not to do” can be stressful enough. Don’t lose sight of the incredible fact that you’re about to make one of the largest purchases of your life. You’re about to become a homeowner—and, that is something to celebrate!