Top 5 Things NOT To Do As a First Time Homebuyer Roger Odoardi If you’re a first time homebuyer, chances are you need all the help you can get. Between finding the home you want, figuring out a way to finance it and getting all of your ducks in a row to lock down that mortgage, the process of buying a property for a first time home buyer can be downright exhausting. And while there are certainly many things a potential first time homebuyer should do before buying that home, there are just as many things they should not do before signing on the dotted line. Remember, getting pre-approved for a mortgage and even going under contract isn’t a guarantee the home is yours. As many say in the business, “loan pre-approval is not loan approval.” Here is some first-time homebuyer help on what NOT to do when in the process of buying a home: 1. Don’t take on more credit The last thing you should before buying that new home is increasing your credit load. You may be tempted to apply for a credit card at one of the many home improvement or furniture stores prior to becoming a homeowner, but think twice. Simply applying for more credit can adversely impact your credit score – which in turn may impact closing on that new house. Some lenders even recommend potential new homebuyers should stop applying for new credit a year before applying for financing. 2. Don’t overspend/over borrow You’ve almost bought a new home; why not buy a new car to go with it, right? Wrong. Resist depleting your savings account – remember you will likely need to tap into that at some point. Borrowing, such as taking on a new car loan, could also affect your mortgage application. 3. Don’t let yourself fall behind Paying your bills and settling debts is of utmost importance while in the middle of buying a house. A late payment posted on your credit report prior to closing on that house could derail everything. A lender could require at least 12 consecutive months of on-time payments to qualify for a home loan, according to Realtor.com. Make sure you pay attention to due dates. 4. Don’t change or leave your job Leaving or losing your job could mean major problems when trying to secure that mortgage. It doesn’t matter if you were laid off or left for a new company, inconsistent employment or none altogether will likely create major hurdles for you. A lender will want to see stability, rather than an unreliable employment history. 5. Don’t accept cash gifts with out talking to your lender first A lender is going to know about any recent cash deposits during the pre-approval process. A monetary gift, say from mom and dad, could create a logjam in the closing process because it will likely raise a few red flags. A lender will then require all of the documentation explaining how and why this money ended up in your bank account. Keep a copy of the gift check. There are many other behaviors that could sabotage your mortgage status. If there’s any doubt about a financial decision you’re about to make, make sure you double check with your lender first. At Blue Water Mortgage, our team of loan officers can help you with any and all questions you may have during the approval process. We also offer a list of tips and resources that could come in handy throughout the loan process. Contact us today! Roger Odoardi Roger is an owner and licensed Loan Officer at Blue Water Mortgage. He graduated from the University of New Hampshire’s Whittemore School of Business and has been a leader in the mortgage industry for over 20 years. Roger has personally originated over 2500 residential loans and is considered to be in the top 1% of NH Loan Officers by leading national lender United Wholesale Mortgage.