RE/MAX Northern Illinois - Laura Schiavone

10 Commandments For The Home Buyer



 

10 Commandments for Home Buyers

 

These 10 Commandments home buyers must follow may seem like common sense to many.  Buyers, however, can sometimes forget with all the excitement surrounding the buying of their new home.  In the past years, I have personally had two separate buyers who saw their home loan turned down, and their dream shattered, a few days before closing because they had bought furniture for their new home before it actually became their home.  Both of them now have beautiful furniture with no home to put it in.

These 10 commandments are a part of the buyer packet I give all my clients when we first meet and I always stress that once they get pre-approved and the process is started, they can’t do anything that might affect their credit.

  1. Thou shalt not change jobs, become self-employed, quit your job, or take a leave of absence of any kind.
  2. Thou shalt not buy a car, truck or van (or you may be living in it)!
  3. Thou shalt not use credit cards excessively or let your accounts fall behind.
  4. Thou shalt not spend money you have set aside for closing.
  5. Thou shalt not omit debts or liabilities from your loan application.
  6. Thou shalt not buy furniture or any other large purchase.
  7. Thou shalt not originate any inquiries into your credit.
  8. Thou shalt not make large deposits without first checking with your loan officer.
  9. Thou shalt not change banks accounts, close accounts, or open accounts.
  10. Thou shalt not co-sign a loan for anyone.

 

Just to be clear, it’s not to say that you CANNOT do any of these things, simply CHECK WITH YOUR LENDER FIRST.  There are occasions that some of the above may be okay, but some of the items are an absolute DO NOT DO.  Your lender will be able to help guide you through the process.

If you are in the process of buying a home, remember that your credit must not change or be affected in any way until you actually sign the paperwork and get possession of your new home.  Lenders will not only look into your credit when you first get pre-approved, they will check it again (and sometimes again and again) before they let you sign the mortgage.  If you want to buy new furniture for your home or change jobs, just be patient.  There will always be time to do it AFTER THE CLOSING.