By: Steve Alonso – Academy Mortgage
Buying a new home means considering your options about how you are going to pay for it and in today’s world, most families that buy a new home end up financing that home in one way or another with a mortgage.
And when it comes to buying a home from a new home builder, the process of getting a mortgage is basically the same as if you buy an existing home.
While it is possible to find just the right “spec home”, many people who buy a new home from a new home builder will go through the process of picking the home site, the floorplan, the options that are available in the home and wait eagerly for the home to go from concept to completion.
Because the process of buying a new home can take more than a few weeks, here are a few pitfalls to avoid so that when it comes time to close your mortgage and move into your new home, everything will go as planned.
Don’t run up your credit cards: When you first get approved for a mortgage when you start the process, don’t go out and spend a large amount of money on your credit cards buying things for your new house. It is a good idea to keep your credit card debt at the exact same (or lower) level it was when you were approved for your mortgage in the first place.
Keep working your normal work hours: If you were working 40 hours per week, keep working 40 hours per week. Don’t think that just because you are approved to buy that new house you can cut back on your work hours.
Don’t apply for new credit cards: Or buy a new car. Or apply for any kind of new credit. If you take on new credit, it is going to count into your overall debt-to-income ratio and you want to make sure you keep it exactly what it was when you started the process.
Don’t bounce any checks or have NSF’s at your bank: These can sometimes pop up and cause all kinds of problems. If there was ever a time that an NSF was “okay”, when you are buying a new home that is not a time you want to have one.
Check in with your loan officer regularly: The lending environment is changing all the time (especially lately) and a regular check-in with your loan officer will help keep you informed of anything that you need to be aware of.
Remember, the process of getting a mortgage is basically the same whether you buy a home that is already existing or buying a new home from a new home builder. You will still need to be approved and provide all of the required documentation. The important thing is that you do not drastically change what you have been doing up to that point!
So be sure not to fall into the pitfalls that could put your approval in jeopardy!
Steve Alonso is a Mortgage Specialist for Academy Mortgage in Mesa, AZ. You can learn more about Steve by visiting his website SteveTheMortgagePro.com.
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