If buying a house in 2018 is part of your new year’s resolution, you’ll want make sure that you avoid doing certain things to set yourself up for success. Here are 10 things to avoid before applying for a mortgage. Having a good credit score, along with other metrics that many people don’t think about, is key to getting approved for the house of your dreams.
Some of it is common sense. Check your credit report to understand your credit score and to make sure there isn’t any false or inaccurate information on it. Reduce debt. Increase savings so you’ll have the necessary down payment available.
Other items are less intuitive, such as not closing an old credit card account.
According to SmarterAssets.com, here are 10 things to avoid before applying for a mortgage in 2018.
- Racking up new debt
- Forgetting to check your credit reports
- Falling behind on your bills
- Maxing out your credit cards
- Closing an old credit card account
- Getting a new job
- Making other major purchases
- Marrying someone with bad credit (so much for romance!)
- Co-signing on a loan
- Making big deposits
Buying a home is a big purchase. Following these tips and being smart about your credit will help you move closer to achieving your home-buying dreams.
Here’s a few more mortgage tips we found on Twitter:
— Guild Mortgage (@guildmortgageco) January 10, 2018
Basically, this means don’t change jobs, as mentioned in #6 above.
This one is interesting. Again common sense on responding quickly, but not as intuitive about changing “where” you have your down payment funds.
— Stephanie Matthews (@HomeLn4U) January 11, 2018
Have you bought a home recently? What else would you add to this list? Comment below and share your experience.