Buying a home can be one of the greatest investments you could ever make. The bulk of the equity and net worth people maintain comes from their purchase of a home. There is, however, a right way and a wrong way to go about buying a new home. To be sure that your home buying experience is a positive one, there are certain things which should clearly be avoided.
Do not change jobs close to your acquisition of a mortgage and think very long about making a switch soon after an approval, an approval can be reversed. No matter how good the offer may be or how much of a raise is being offered, you really do not know what the future holds on a new job. During the initial months or even the first couple of years you own a home, you will assuredly want some financial stability in your life. The mortgage lender also will be looking at your employment history and, if it appears you are bouncing from job to job, you might undermine your ability to be approved for a loan.
Avoid changing banks. While this is not as drastic as changing jobs, switching to a new bank might also give an impression of a lack of stability to lenders. Honestly, we never want to give the lender any pause for concern. This is doubly true in the current lending climate, a climate that can be a little tough at times.
You definitely do not want to make any other massive purchases around the same time. The monthly payments on a mortgage can drain a portion of your finances. If you buy a new, expensive car right before you make your first mortgage payment, you will likely be setting yourself up for some serious fiscal woes. Avoid racking up more debt and pushing your finances to the limit when your are buying a new home.
Avoid borrowing money to buy furniture on credit. While you definitely do want to furnish your home, there is no reason to buy brand new furniture and there is especially no reason to buy it with a store loan. Buy reasonable furniture you can afford and do so by paying cash.
Never pay anything late around the time you are buying a home. The reason for this is obvious. You do not want to mar your credit in any way.
Buying a home should be a fairly straight forward process. Avoid doing anything that would undermine a great result.