Last month, we shared the first part of the most important document of your real estate journey: the 10 Commandments of Buying: Part 1.
If you’ve been waiting to dive deeper into the rest of the commandments, we’re here to be your real estate scholars. Find your way into the real estate light, and commit these last five commandments to memory!
Commandment #6: Thou shalt not buy new furniture or get married before closing.
Big life changes on top of big life changes can throw you for a loop. If you’re already in the process of buying a new home, maybe put off some of the other major decisions on your mind, or vice versa.
Things like new furniture and weddings can also cost a decent amount of money, and when you’re buying, every dollar counts. Keep the weighty decision in check and to a minimum.
Commandment #7: Thou shalt not originate any inquiries into your credit.
That’s a lot of jargon, but it’s just the real estate way of saying don’t put in any official credit request checks while you’re buying. Your lender will take care of those needs for you, and requesting checks can often affect your score.
Commandment #8: Thou shalt not make large deposits without checking with your loan officer.
Putting a large amount of money—like a profit from a car sales or stock payouts—into your account can actually hurt your chances of purchasing a home. Why? Well, a surprise deposit can mean that you got the money from a loan or cash advance, meaning you aren’t quite as financially stable as you led the lender to believe.
If you do have to make a large deposit, you should have the proper documentation to prove where it came from. But, if possible, try to avoid the headaches that large deposits can cause.
Commandment #9: Thou shalt not change bank accounts.
Switching banks at any point in time can be a nuisance, but especially when you’re buying a home. Not only will it will extend the time it takes to complete the process, but might also make you look less reliable to lenders.
Remember in an earlier commandment when we discussed avoiding major life changes? Add switching banks to the list.
Commandment #10: Thou shalt not co-sign or sign for any type of loan before closing.
The amount of money you get from a lender is almost entirely dependent on how financially stable you are. Taking out another loan while you’re trying to get a home loan? You’re going to seriously hurt your chances of getting the amount you want from a lender.
Plus, paying two loans at once is a lot to take on. Not only will it harm your application, but it’ll also cause you a fair amount of stress.
Commit to the Commandments
Now that we’ve broken down all Ten Commandments, you’re ready to go buy your new home, right? We don’t expect you to memorize everything we’ve talked about, but they are good guidelines to keep in mind. Luckily, when you work with the Kathy Henne Team, we’ll be around to remind you of them all.