Mortgage brokers in Texas are always working with first-time homebuyers to help them get the best mortgage rates. However, there are common financial mistakes that every first-time buyer mistakes that can hurt their chances of buying a home. We recommend avoiding these 5 mistakes if you’re shopping for your first home or your forever home.
Job Change
Getting ready to buy your first home and looking for a new job are two exciting prospects that should never be done together. Your mortgage broker will be looking to see that you have a steady source of income while you’re shopping for mortgage rates. Leaving one job to start another in the middle of the process could seriously hurt your chances of getting approved.
Forgetting Bills
Everyone has a bad day and realizes that they’re behind a day or two on their water bill. However, when you’re working towards approval for mortgage rates, you absolutely do not want to fall behind on your bills. Even missing a payment deadline by a day or two can seriously hurt your credit score.
Losing Track of Your Credit
When was the last time you checked your credit score? Before you even start to apply for a mortgage, you should take stock of your current credit score to determine your eligibility. Lenders are sure to request a report of your credit score, so it’s best if you know what they’ll find before you do.
Falling into Debt
Whether it’s co-signing a loan or racking up other types of debt, putting yourself into a precarious position with your debt-to-income ratio is never good when it comes to mortgage rates. Lenders want to see that you’ll be able to balance your mortgage payments without a lot of other demands on your income.
Today, nearly 2% of all mortgages are in delinquency but in 2009, mortgage delinquency climbed as high as almost 8.5%. You don’t want to be caught in a position where you can’t afford to pay your mortgage. If you’re trying to put a kid through college or buying a brand new car, consider those factors before you begin the home-buying process.
Poor Credit Card Management
Maxing out credit cards, forgetting to make a payment, or closing a credit card are all warning signs to mortgage lenders. Maxing out your credit card or missing a payment can send the message that you don’t know how to manage your money while closing a credit card can cause your debt-to-income ratio to skyrocket, effectively killing your credit score. Your best bet is to carefully manage your credit card debt so that it works for you, not against you, in the hunt for good mortgage rates.
Buying a home can be stressful but you don’t have to do it alone. The Tuttle Group helps potential homeowners procure Dallas home loans for the house of their dreams. Ready to get started on buying your home? Contact our team today!
