When the spring rolls around, you are likely going to be full force into your search to buy a home. It’s a great time to start looking now so that when the right home opens up, you’ll really know. There are a few mistakes people make despite knowing they are preparing to buy a home, such as inadvertently harming their credit score, getting a new job, or spending money on furniture in advance.
While you may not have realized that buying a new car or getting a new job would matter in regards to your home purchase this spring, you may harm the buying process and your pre-approval for a mortgage. Take a look at common mistakes people make when buying a home that could put them in a bind so that you can avoid them this spring.
Don’t close credit accounts
If you’ve been working to pay off credit card debt in preparation of your home purchase, make sure that you don’t close your credit accounts once they are paid off. On the other hand, don’t start opening credit accounts to furnish your new home either.
It’s a bad time to open or close credit accounts because this can delay your mortgage approval with the alterations to your credit score. Having an application out for a credit card and waiting for the approval will look bad on your credit score, along with balance transfers and unused accounts.
Getting a new job
While it may seem like the perfect time to take a new job opportunity, it’s going to harm you when it comes to getting a mortgage approval for your new home. A job change actually delays the buying process because it shows a less secure financial situation. Try to wait on leaving your place of employment for something closer to home until you’re already in the new home.
Watch out for big purchases
Along with all of the exciting new furniture and big screen TVs you may be craving for a new home, don’t make a big purchase on a vehicle or other financed items right now. Even if you have the down payment prepared for a car, boat, or RV, it’s not the time to spend money on other things outside of the home purchase. Not only will adding more to your credit potentially hurt your score, but you may need that down payment money towards things like closing costs, utility setup, or a home repair that comes up.
Pieces of furniture like a dresser set, a large TV, and a new couch are all important to your new house, but you may wish you had waited until you were in it to really get a feel for the room and what type of furniture would suit it best. Take your time decorating the home once you’ve closed and are in it, so that you can choose a style that suits it best and measure the rooms for the right size of furniture.
Keep up the hard work on your credit score
Just because you’ve already done a great job keeping a high credit score up until now, doesn’t mean you should stop putting in the effort now. Make sure you are continuing to pay your bills on time instead of skipping out to pay for other things. Sometimes people make the mistakes of skipping their bills, like utilities or credit card payments, because of receiving a pre-approval on a mortgage.
Unfortunately, when it’s time to get the approval, the credit score may be affected which may affect your approval or interest rate. Make sure you keep up the responsibility for the sake of your credit score and for your home approval.
Hold on to your savings
Just like how you don’t want to spend money on another purchase’s down payment right now, it’s a great idea to hold on to your savings right now too. All of that money may come in handy when it’s time to setup utilities, pay for furniture, or handle your closing costs. You may also get into the home and find there is a repair that comes up, an HOA fee to pay, home maintenance costs like landscaping needs, or some else. Having a savings account that can be used for these scenarios, or something you don’t even know about yet, will make the transition to home ownership a much smoother process.
Lastly, make sure you keep track of all documents during the process and be sure to jump on any opportunities for the perfect home as soon as possible. It’s important to have documents saved from anything related to the process, such as the pre-approval documentation. It’s also important that when the right home comes up that you are jump on it in case someone else sees this opportunity and gets it for themselves. Make sure you are always prepared to put in an offer on the right home by having proof of your pre-approval and by being vigilant about new listings.
The best way to score your dream home this spring is to take care of your credit, stop spending money on extras right now, and by being ready for the right listing to pop up. Use these tips to know what to avoid during the home buying process in Pittsburgh this spring.
If you have any questions, comments, or want to make sure you have all of your bases covered when buying a home in the Pittsburgh area, Feel free to e-mail me at email@example.com
I am an annual top producing, full time, professional RE/MAX Realtor in the Greater Pittsburgh area. I have the most Zillow Group reviews of any individual agent in the entire state of Pennsylvania. I hold coveted real estate designations such as, CRS, ABR, GRI, SRES, e-PRO & am a member of the Institute of Luxury Home Marketing.
My 2015 stats included an average sale price to list price ratio of 98%, an average days on the marked of 41 and nearly $14 million in total production. I was also inducted into the RE/MAX Hall of Fame.
I am also the social media/technology director at RE/MAX Advanced, REALTORS. You can find me on any social media platform by searching #BrianSellsPittsburgh
I donate a portion of my commission to the Children’s Miracle Network and I am also a member of the Giveback Homes Organization and the Teacher Next Door Program.
Posted on February 24, 2017 at 1:49 pm by Brian Teyssier