What Not To Do When Buying A House | Donald Horne, Broker / Owner
Team Success Listing LLC
Don’t Close Any Accounts
It makes it look like you have less available credit. Pay accounts down to 30 percent, or pay them off if you insist, but DON’T close them!
Keep Bank Statements, Pay Stubs Readily Available
Don’t Buy Furniture, Appliances or Anything
New accounts create a FICO-reducing triple whammy of a new account/inquiry, an account with a short length of repayment history plus a high balance-to-credit limit ratio. (When you first open an auto account or installment account, you are already at your credit limit — so it looks like you are maxed out.)
Don’t Buy a Car
See above. This also makes it harder for you to have a qualifying debt-to-income ratio, by increasing your debt without increasing your income. As a comedian once observed, “If you have a Land Rover and a landlord — it’s time to reverse your priorities.”
Don’t Change Jobs
Don’t Pay Bills Late
You would not believe the number of people whose credit scores actually drop while they are house hunting because they make late payments. I’ve actually seen people who just barely got pre-approved have their FICO scores drop, find the house, make an offer, and then SURPRISE!! They no longer qualify for the mortgage because they have paid their bills late.
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3 more things to avoid after applying for a mortgage
Please feel free to call, email or text us for any further help or with questions about the buying process. Helping you find the home of your dreams is what we do!
Team Success Listing LLC
Donald Horne, Broker / Owner
Shirley Grindle, Buyers Agent
teamsuccesslisting@gmail.com
810-338-0628
Lapeer, MI