Hi everyone, this is Jason, from the JasonRHomes team, and today we're gonna talk about what NOT to do when buying a home. There are several things you do not want to do today. I'm gonna talk about 10 things, the first of which is: don't change jobs! If you're a W2 employee and you change to a 1099 self-employed and stuff like that, without a history of it, they may not be able to use it for your loan. Wait until after you finish closing on the home to change your job, to another job or another industry. If it's within the same industry, talk to your loan officer, you may be able to pull it off.
The next 2 have to do with credit. Don't buy a car or truck because that goes on your credit, if you're buying with credit, if you are not buying with credit and you're using cash you might be able to pull it off, but you may need that cash for your down payment. Wait that 30-45 days until it closes before buying a car or truck, unless your loan officer tells you that you can.
Number three, do not use credit cards excessively. When we talk about debt to income ratios, if you raise your debt up a ton, then what's gonna happen is you may disqualify yourself for that loan. So, use it the way normally would use it, or less, until the process is over. You do not want to buy something and lose your house because of it because you can no longer get that loan. Don't spend the money you have set aside for closing, so an FHA loan is 3.5 % down conventional loan can be anywhere from 5% down to 20% down. There are 0% down loans but you also have closing costs. If you're setting aside 3.5 % of a $200,000 house $7,000 plus your closing cost of 6-8 thousand dollars so $13,000 don't spend it, put it in a separate account, because you want that to be there, at the end, you need that to close.
Fourth thing, don't omit anything from the loan officer, they will find it. I've had situations where this happened, somebody owned a house in another state and didn't tell the loan officer, had a mortgage on it, debt right? the loan officer found out about it, disqualified from the loan. They will find it, tell them about everything that's going on, also makes for a much smoother process.
This is probably the biggest one I see, is do not buy furniture on credit, you wanna furnish your new home, nice new furniture to fit the space, don't do it before the home closes. As we talked about before, furniture on credit when your debt goes up, you may throw off your ratios and no longer be able to buy the home.
Next thing is, don't originate any new inquiries on your credit, because that could hurt you, or anything against your credit. Somebody opened a new phone, they switched services, so that's a credit inquiry because they get a hit on their credit due to one service not paying off the other. It disqualified them for the loan, we could save it with another loan type but you wanna make sure you're not doing that because you know you could lose a loan.
Last couple are about banking, no large deposits in your bank account, that does get flagged, you wanna make sure they have a trace of where the money comes from. Also, don't change bank accounts the loan officer needs to trace where all the money is coming from, it's better that you actually don't change your bank at all, don't make any large deposits or anything like that.
Last one, don't cosign for anyone because your debt goes up when you sign a loan. If you sign a loan for someone else, your co-sign will make your debt go up on that one too. This could throw off your debt to income ratio, you could lose the loan. Thank you everybody for listening, I'm Jason from the JasonRHomes team, if you want to see more videos like this about real estate, community, or animals, find us on our YouTube page, you can also find us on facebook, linkedin, instagram, and twitter, all @JasonRHomes have a great day!