Don’t Move Money Around
Do Not Change Jobs
- Salaried Employees: Mak sure to remain in the same line of work
- Hourly Employees: Make sure to remain in the same line of work
- Commissioned Employees: Do not change jobs before buying a home. Doing so creates uncertainty about your future earnings. As a result, there would be no track record from which an average of your earnings coud be done. Changing jobs would negatively impact your ability to buy a home
- Part-Time Employees: Do not change jobs. There would be no way to tell how many hours you will work each week on the new job. By remaining on the old job, the lender can average your earnings.
- Self-Employed: Do not change before buying a new home. Lenders like to see a two year track record. Even considering a change from a sole proprietorship to a partnership or corporation should be done after the home is bought.
No Major Purchases of any Kind
Don’t Buy a Car: A new car payment reduces your purchase price. Your ability to qualify for a mortgage depends on your debt-to-income ratio. This is the percentage of your gross monthly income that you spend on debt. This includes your housing costs, as well as, credit cards, student loans and car loans.
It’s the House for You, What’s Next?
- Go back and look a second time
- Take a list of things the inspector looks for: look critically at all systems
- Review your wants and needs, and make sure you are meeting enough of them
- Estimate expenses for repairs, replacements, new appliances and furniture
- Estimate utilities and maintenance
- How old are the appliances, furnace, water heater and roof?
- When will they need replacing?
Double check the neighborhood.
- Is it well maintained?
- What are property values doing?
- Does it have the services you want? Sewer, lights, trash, etc.
- Go by it at different times of the day