Wednesday, July 18, 2007

One Mistake You Don't Want to Make When Buying a Home


Don't make a major purchase.

So you’ve found your next dream home and the seller accepted your offer to purchase. The home is officially under contract, you're counting down the days to closing, and you’ve been pre-approved by the lender. The house is yours for sure, right? Well … not so fast. Nothing is certain in the home-buying process until the keys are in your hand. There are still hurdles to jump before it's yours, and your actions from start to closing can create slowdowns and even halt the sale. So through my next several posts, I’ll be listing the top five things not to do before closing on a home. Here’s No. 1: 1. Don't make a major purchase. While you might be imagining a new car to fit nicely in your garage, hold off. If you’re depending on a mortgage to move in, it’d be smart to wait until after closing for that car. An increase in your debt-to-income ratio reduces the amount of monthly income available for your mortgage payment.

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