The 10 Commandments of Buying a Home

By Armando D. Liban
July 3, 2024

Buying a home is a monumental milestone, filled with excitement and, often, a bit of anxiety. To help ensure a smooth journey to homeownership, it’s essential to follow some critical guidelines. Here are the Ten Commandments to follow when you’re in the process of buying a home.

The Ten Commandments of Buying a Home

  1. Thou Shalt Not Change Jobs, Become Self-Employed, or Quit Your Job. Consistency is key during the home-buying process. Lenders look for stability in your employment history, so avoid any major career changes until after your home purchase is finalized.
  2. Thou Shalt Not Buy a Car, Truck, or Van. Major purchases can significantly impact your credit and debt-to-income ratio. Hold off on buying any new vehicles to ensure you don’t jeopardize your loan approval.
  3. Thou Shalt Not Use Credit Cards Excessively or Let Current Accounts Fall Behind. Maintain your credit score by avoiding excessive use of credit cards and keeping up with all your current accounts. A dip in your credit score can affect your loan terms or even your eligibility.
  4. Thou Shalt Not Spend Money You Have Set Aside for Closing. The funds set aside for your closing costs are crucial. Don’t dip into this money for other expenses, as you’ll need it to finalize your home purchase.
  5. Thou Shalt Not Omit Debts or Liabilities from Your Loan Application. Transparency is vital. Make sure to include all debts and liabilities on your loan application. Lenders will verify your financial background, and any omissions can lead to complications or denial of your loan.
  6. Thou Shalt Not Buy Furniture on Credit. As tempting as it might be to start furnishing your new home, avoid purchasing furniture on credit before closing. New credit accounts can affect your credit score and debt-to-income ratio.
  7. Thou Shalt Not Originate Any Inquiries Into Your Credit. Each credit inquiry can lower your credit score. During the home-buying process, refrain from applying for new credit cards or loans to keep your score intact.
  8. Thou Shalt Not Make Large Deposits Without Checking with Your Loan Officer. Large deposits can raise red flags for lenders. Before making any substantial deposits, consult with your loan officer to ensure they won’t negatively impact your loan approval.
  9. Thou Shalt Not Change Bank Accounts. Consistency with your bank accounts is crucial. Changing bank accounts can make it difficult for lenders to track your financial history, which can delay the loan approval process.
  10. Thou Shalt Not Co-Sign a Loan for Anyone. Co-signing a loan makes you financially responsible for someone else’s debt, which can increase your debt-to-income ratio and affect your loan approval. Avoid co-signing until after your home purchase is complete.

By adhering to these Ten Commandments, you can help ensure a smooth and successful home-buying experience. Stay focused, maintain your financial stability, and soon you’ll be holding the keys to your new home!

Planning to Purchase a Home?
See what properties are available on the market near you!
Click the Link to –> Start Your Search

Or Contact me directly:
Armando D. Liban
Realtor®/Broker
EAGLEWINGS REALTY
(240) 812-2988
armando@eaglewingsrealty.com