Your Insider’s Guide to Smart Home Buying
Exclusive 8-Week Series
So you’re ready to buy your first home? That’s so exciting! But before you start scrolling through Zillow at 2 AM (we’ve all been there), let me share some insider tips that could save you from some pretty costly mistakes.
1. Don’t Change Jobs (Yet)
Even if you’re daydreaming about quitting your job, now’s not the time. Lenders want stability and proof of consistent income. Even a better job offer can complicate your approval. Hold off until after closing, your future self will thank you.
2. Don’t Pay Off Debts Without Asking
This one surprises people. Paying off credit cards or loans seems smart, right? Not always. Some programs require you to have cash reserves in the bank, and paying off too much debt could hurt your chances. Always check with your lender first.
3. Don’t Make Major Purchases
That new car or sectional sofa can wait. Big purchases usually mean new credit inquiries and higher debt-to-income ratios, two things lenders don’t love. Save the shopping spree for after you’ve got the keys.
4. Don’t Miss a Payment
Car loans, credit cards, insurance, even small bills, pay them all on time. One late payment can ding your credit and increase your interest rate. Set reminders or auto-pay so you don’t miss a beat.
5. Don’t Make Unusual Bank Deposits
Lenders like “boring” bank accounts. Large or last-minute deposits (like cash you’ve been stashing away) look suspicious unless they’re properly documented. Ideally, your down payment funds should be sitting in your account for at least two months.
6. Don’t Co-Sign Loans
Even if you’re not the one making the payments, co-signing counts against you. It increases your debt-to-income ratio and can derail your loan if the other person misses a payment. Be the hero later, at their housewarming party instead.
7. Don’t Move Money Around
Now isn’t the time to get adventurous with investments or shift funds between accounts. Lenders want to see liquid, stable assets. Remember, you’re already making the biggest investment of your life: your home.
The Bottom Line
I know this feels like a lot of rules, but being extra careful for just a few months can save you thousands of dollars, and even make the difference between getting your dream home or losing it.
Next up in m’y Insider’s Guide: Red Flags to Avoid When Buying a Home. These are the warning signs you don’t want to miss during your search, and spotting them early could save you stress, time, and money. Knowledge is power, and I want you to be the most prepared buyer out there.
Ready to start your home-buying journey? Let’s talk about your goals and get you pre-approved with a trusted lender. Together, we’ll find the perfect home and avoid these common pitfalls.
Happy house hunting!
seller
buyer
homeowner
