Atlanta Realtor Tip: Don’t Make These Home Buyer Mistakes

Preparing to buy a home can be hard work, from improving your credit score and building up a savings account to getting pre-approved for a home loan. But that’s just the beginning. Even after you have been approved for a mortgage, it’s important to avoid doing anything that could alter your credit profile until after the mortgage papers are signed and processed. Read on to learn the most common mistakes to avoid before buying a home, from your north Atlanta Realtors Barry Wolfert and Lisa Wrenn.

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Don’t apply for new credit cards or close existing accounts

Becoming a homeowner opens up a whole new world of maintenance, remodeling, and repairs (plus all of the power tools that go with them), but don’t run out to your nearest home improvement store to sign up for a store credit card just yet. Opening new credit cards can lower your credit score, which is a big don’t when a lender is involved. On the other end of the spectrum, this is also not the time to close existing credit accounts. While it may make financial sense to cancel unused credit cards, you should wait until after closing on your home in order to avoid changing your credit usage to credit limit ratio.

Don’t increase your debt load or make large purchases

From home improvement loans to buying a car, you should not add to your debt load or diminish your savings account before buying a home, even if you know you can afford it. Changing your debt to income ratio or decreasing your savings could affect your mortgage application and even cause your lender to reject your application.

Don’t miss payments

While buying a new home and preparing to move can be stressful, it’s important not to let any of your bills slip through the cracks. Missing a payment or paying late can damage your credit score, which is one of the main factors in whether or not you will be approved for a home loan.

Don’t take a new job

If possible, try not to change jobs.Your mortgage lender will need to verify your employment and income based on your pay stubs, and taking a new job (even if it pays more) can complicate that process and postpone approval of your loan.

If you are considering buying a house, contact Barry Wolfert & Lisa Wrenn today! As Keller Williams Realtors, we have the tools, experience, and passion to help you navigate the north Atlanta real estate market, including Marietta, Roswell, Kennesaw, Acworth, Smyrna, Alpharetta, and Woodstock.

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