Most home buyers rely upon a bank or mortgage company to provide a home loan. In the past few years, this process has become more difficult as lenders and the federal government are restructuring the loan process in reaction to the housing crisis. Now lenders require buyers to have a good credit score (over 650 in most cases, 680+ if you require mortgage insurance), verification of income, a good debt to income ratio, as well as several other criteria.
Once you are pre qualified (or pre approved) for a real estate loan, there are 10 home buyer commandments you need to know:
1. Thou shalt not change jobs, become self-employed or quit your job.
2. Thou shalt not buy a car, truck or van (or you may be living in it)!
3. Thou shalt not use charge cards excessively or let your accounts fall behind.
4. Thou shalt not spend money you have set aside for closing.
5. Thou shalt not omit debts or liabilities from your loan application.
6. Thou shalt not buy furniture.
7. Thou shalt not originate any inquiries into your credit.
8. Thou shalt not make large deposits without first checking with your loan officer.
9. Thou shalt not change bank accounts.
10. Thou shalt not co-sign a loan for anyone.
Failure to follow these commandments may keep you from being able to purchase a home (and yes, I have seen transactions fall apart because the home buyer failed to follow these rules!)