BUYING a home can be the biggest decision of your life.
So you probably want to avoid making major mistakes.
Real estate expert at MyJobQuote.co.uk, Thomas Goodman shared what not to do before buying a home.
There are a lot of things you need to get a mortgage from your credit score, your spending history, even the work you do.
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Not checking your credit score
Your credit score is extremely important when buying a home.
It is basically a CV that lenders use to determine how well you will be able to repay them.
If you have a bad score, your application is more likely to be rejected, which will lower your score even further.
So, before you apply for a mortgage, be sure to check your credit score.
Then you can still fix it and avoid being rejected.
While you are in the process of buying a house, you should never change positions.
Lenders review your employment history to make sure that you are financially stable and that you will be reliable enough to make all of your loan payments.
If you change jobs before getting a loan, you make yourself a weaker candidate for the lender, and therefore more likely to be rejected.
The lender would see you as unstable or without a stable income, which would make them reluctant to offer you such a large loan.
Saving for a mortgage or even a deposit on a house will make all of your finances much tighter.
Which means that a budget is essential.
It can be difficult, but try to avoid spending more than you plan for each month.
You may need a little extra cash to cover closing costs.
It can be exciting to splurge on beautiful furniture for your new pillow, but try to focus on securing the home first.
Not being registered to vote
Lenders tend to verify your existence by checking the voters lists, which means that it is quite important that you are registered to vote.
Not being on the list will delay your mortgage application and could even lower your credit score.
If you are not registered, go to gov.uk where you can sort it.
Buy furniture on credit
If you need to buy new high-tech furniture and appliances for your home, don’t use a credit card to get them.
Accidentally getting into debt can seriously damage your credit score and could be another reason your loan application is rejected.
Get pre-approval last
Most sellers require a pre-approval letter with their offer to confirm that they are working with a qualified buyer.
Since the housing market is competitive, a seller may move on and accept another offer instead of waiting for you to contact a mortgage company.
Always look at homes with pre-approval in place to avoid feeling discouraged.
Have a bad lawyer
Most mortgage lenders have a panel of attorneys they can instruct.
If you choose an attorney who is not on their panel, you will need to pay extra for one of the licensed attorneys.
To keep costs as low as possible, always check the list approved by your lender before engaging with a lawyer.
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