The previous article discussed getting ready for the home search. Now let’s discuss what you need to do during the home search.
Naturally, your search for the right home involves looking at homes, initially on-line, and finding the ones worth your time and effort to see in person. This is where a good realtor can really help you. You need to let the realtor know how much of loan you qualified for, with how much down payment and any other relevant details from the lender together with where you want to live and your basic needs. For example, some people must have a garage, others are just as happy with a carport. Even a fair realtor should be able to take your input and set up a customized search that automatically sends you homes that meet your initial criteria.
The Not So Obvious
This is extremely important. Whatever your financial situation was when you spoke with the lender, it needs to remain the same or improve. To improve on your financial situation, pay down your debts. Do not add to your debts while in the process of buying a home. Equally important, make sure you pay all of your bills on time during this period. Yes, buyers have been in escrow on a particular home and then went shopping for furniture. Result: debt grew to the point the lender would not make the mortgage loan. Also true, a buyer forgets to mail a check early enough for the payment to be on time. Again, the lender checks the credit report before making the loan. They find out that the buyer had been late on a payment. Here, too, the lender refused the mortgage application. Work at keeping your credit at or above the level when you first applied for the loan and there will be no problem getting the loan.
If you are in escrow (the process of buying a particular home), delay purchases. If you have car trouble, see if you can carpool to work, or take public transit rather than put several hundred (or thousand) dollars charge on a credit card. Try hard to keep you debt at or below where is was when you first met with the lender. This is what the lender expects you to do and they check to confirm you are doing as expected.
If you have any concerns or run into any issues, contact me on my cell phone at 760 622 5087 or at [email protected]