Six Things That You Shouldn’t Do When Buying a Home

Buying your first home (or any home after that) is a big deal. It is an exciting time in your life, and you deserve to celebrate. However, you shouldn't just yet! Even after you get pre-approved and find the right home, there is a chance that it will fall through, especially if you are not careful. Many people make mistakes before buying a home and then the loan falls through, leaving them heartbroken.

Here are some things that you shouldn't do when buying a home.

Don't lie on any of your applications. Though you may not want your lending company to know everything, you must tell them about all of your income and debts to ensure that you can get a home loan. If you do lie, it is fraud, and you can be prosecuted for it, while also losing the chance at a great home.

Don't leave your job. No matter how much you can't stand your job, now is not the time to quit, even if you find another one right away. Your loan company needs to know that you have had a steady job that you have been in for a long time. Otherwise, if you are constantly changing jobs, they might not think that you are a good candidate to loan money to.

Don't make any big changes in your life. Now is not the time to change banks, buy a new car, or anything else, especially if you are using credit cards or getting a loan. Not only will this change your credit score, it may also increase your debt-to-income ratio. The bank may decide that you are too much of a risk to loan money to (or that you won't be able to make payments due to your other debts).

Don't put large amounts of cash into your bank accounts. Lenders want to see that you are slowly putting money into your bank account for a down payment. They don't want you to mysteriously come up with ten thousand dollars. It looks a bit suspicious, and they may wonder how you get your money. Instead, your down payment should be in your bank accounts for at least two months. In fact, companies prefer to lend money to those who have worked hard to get a good down payment.

Don't get so emotional through this stressful time. Emotions often run high and people quickly get disappointed. If the appraisal is lower than you hoped, talk to your Realtor. The same goes if the loan has some problems with the home inspection. If the house is going to be yours, your Realtor will help you find a way.

Don't have a Realtor to help you through the process. The knowledge that a Realtor brings to the table is worth every penny, helping you through the whole process and taking a lot of the stress off your shoulders. He or she will work with the buyer's agent (or construction company) to ensure that you are getting the best deal possible for your dream home.

It is essential to have a Realtor on your side during the whole process. He or she will help from the pre-approval, through the home visits, home inspection, and even settlement. Hopefully, by using the knowledge that you learn from him or her, you won't make any mistakes with your credit.

Though it can be really hard, you need to make sure that you don't make any large purchases, take out more credit cards or even a loan, or deposit money into your bank account. You need to show the bank that you are a good risk so that you can buy the home of your dreams!

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Previously published on Medium and/or Newsbreak.