The Do's and Don'ts of Real Estate

Have you been thinking about buying a home?  If you're paying attention, you are noticing that interest rates are low right now.  Here are some tips if you think home ownership is in your near future.

First, DO NOT change your job!!  Lenders want to know that you can pay back the loan and that you're a reliable person.  If you change your job, they are not going to see the stability that they need to see.

Don't buy a new car, new furniture, new appliances or other big ticket items!  For one, this spends the $$ money  $$ that you've set aside for buying a new home.  However it also means that your credit score is likely to go down because you've got credit inquiries and opened new loans.  And now you've got a car payment.  Now you look risky.  Plus you should be saving - Be smart and put that money for a new loveseat into your savings account instead.

Next up, pay your bills!  Letting current accounts fall behind is like shooting yourself in the foot when you're trying to buy a home.  Don't lower your credit score, pay your bills. 

Don't change bank accounts or make large deposits.  During the loan process for a home, they'll want documentation of everything.  So don't make it more difficult by waiving red flags and having mysterious money appear or changing banks.

Do not for any reason co-sign a loan.  I know you want to help out your best friend from high school and you know that he'll make his car payments and all he needs is your name on his loan.  Nuh-uh!  Don't do it.  Sure you'll be the nice guy and help a friend out, but you're making it that much worse on yourself, because now your credit tanks.

What can you do to get ready to buy a home?  Get your documentation together.  Get all your financials, like bank statements, pay stubs, tax info., etc.  All the good stuff that you know a lender is going to want to see.  Talk to a Realtor and a lender.  Start the conversation early, so that you're ready to go when you the time comes for you to make a move.

You can buy a home, maybe today, maybe tomorrow. Maybe next year.  Make it happen.