Do not let bad credit ruin your chances of being a homeowner. Watch out for these mistakes that are easily avoidable.
Becoming a Co-Signer
Think twice. Make sure that the person that you are co-signing for is trustworthy. When you co-sign a loan, you automatically become responsible for payments in case you partner defaults. This could lead to further credit issues and even prevent you from being approved for a home.
Ignoring Your Credit
Your credit score report tells lenders about your payment and borrowing habits. More importantly, it shows how responsible you are in paying back any debt. Before applying for a loan, make sure your report looks good and shows good credit. Typically, a score above 700 is considered good credit.
Switching Jobs or Starting a New Business
Switching your job or breaking ground into a new business may not be the smartest move before applying to a loan. It can make lenders nervous about instability issues on income, so it is best left avoided if you are planning to purchase a home soon.
Making an Expensive Purchase
While it may be tempting to purchase a new car or tickets for a long vacation, this could deplete your cash on hand. Plenty of money is still required for a down payment, insurance, and closing costs when buying a home, so make sure to instead avoid all sort of big purchases.
At MGR Real Estate, we are read to help with all home purchases. Reach out to us to see how we can help you gain your dream home!