3 Mistakes To Avoid When Buying a Home

By Julia De Sosa-Rocha

Julia De Sosa-Rocha moved to Atlanta in 2004. She truly fell in love with Georgia's charm and southern hospitality. That is when she took a decision to change her career path and became a Real Estate Agent. Originally, she had a Law Background. She wanted to use all her knowledge to be that type of expert for her clients who will protect them in various real estate transactions. The idea of helping people & guiding them through the process of finding their dream home is her number one priority.

I recently spoke with a first-time homebuyer who asked me, “Julia, what should I NOT do when buying a home?” I thought that was a great question, and I wanted to share the advice I gave her. But before we discuss what you should not do, I’ll first tell you what you need to do when buying a home.

The first step when buying a home is getting approved for a mortgage. A pre-approval is a formal process by your lender to ensure you meet the down payment and income requirements. Your debt-to-income ratio should be normal, meaning your debts should be manageable relative to your income.

Having that pre-approval makes you more desirable to sellers. When you make an offer with an attached pre-approval, you show the seller that you are a well-qualified buyer. However, there are three main things that you should avoid once you have your pre-approval:

1. Do not quit your job. Employment verification happens a few days or on the day of closing. If you don’t have a guaranteed source of income, you could lose your entire pre-approval. Even changing jobs can impact your pre-approval if your new job offers a lower income. You may not qualify for the mortgage you were originally approved for, so speak to your mortgage loan officer before making any job changes.

2. Don’t move money around. Many homebuyers think they should move their money around to prepare for a down payment. However, all mortgage deposits are tracked, and significant changes in your financial accounts can create extra paperwork. This means more time and hassle to verify where your money is coming from before the loan can be finalized. It’s just better to leave the money where it is.

3. Don’t apply for credit cards or let your credit score drop. All loans, including mortgages, are approved based on your debt-to-income ratio. If you apply for new lines of credit, it can disrupt your pre-approved rate. It’s best to hold off on new loan applications until your mortgage is finalized. Also, remember to pay your bills on time and avoid making large purchases on your existing credit cards.

If you have any questions about buying a home or anything else related to real estate, please feel free to reach out to me at (404) 886-0566 or juliarealtyatl@gmail.com. I’m always happy to help.