Want to buy a home in the Edmonton area soon? Beware.
Your behavior during the home search and purchase process could directly effect your chances of success. Here are 3 things you MUST avoid before you buy and move into your new home.
1. Switching Jobs
Mortgage lenders are cautious. If you switch jobs just as you are applying for a mortgage, your ability to borrow money may simply evaporate until you have passed a suitable probation period, which is most often 3 to 6 months. If you have your eye on that dream home now, chances are it will be long sold before you quality for a mortgage. Our advice: Stay in your job until you move in.
2. Buying That New Car
We have seen this happen several times. A prospective buyer ‘stops in’ to their favorite new car showroom. You fall in love with that shiny new car or truck and the salesperson convinces you that the super low payment is “oh so manageable”. The problem is that you just added a large financial liability and increased your debt load. Your debt service ratio just changed and could prohibit you from qualifying for a mortgage for the next few years.
By the way, it’s the same if you buy furniture, a hot tub, pool table or an RV. At all costs avoid purchasing big ticket items until you have moved in.
3. Applying For Credit in Too Many Places
Whilst there’s nothing wrong with shopping around for best rates and mortgage deals, allowing potential mortgage lenders to pull your credit report could be a problem. It’s important to have a good Beacon Score. In general, applying too often and in too many places for credit will lower your score and hence your attractiveness to lenders. Ironically, if you don’t apply, your score goes up.
Can we help you? We can help you to purchase ANY home or condo in the metro Edmonton market. And we will give you cash when you move in. For more information contact our broker owner Stuart Neal. He can be reached at 780-760-2014.