How Excitement Killed A Home Buying Dream
So, you have found your dream home, made an offer that has been accepted, and even pre-arranged your financing. All that’s left is to conclude the contingencies and to get together on settlement day. It’s all exciting, especially for first home buyers. That excitement could result in an end to your home buying dream – and cause a few other hassles as well.
When buying a first home, it can be hard to get over that excitement stage. You don’t have to ‘get over’ it, but you do have to watch what you do with it. Once you are heading towards settlement on a home, it’s only natural to start planning your new life. Part of that planning includes how and where you are going to put everything, and what if anything you need to get to make that house a home – and therein awaits a real trap for first home buyers.
You may have pre-arranged your financing, but that pre-arrangement is not final. The size of your down payment, the market appraisal, and the title search can all affect the final approval of your mortgage. What often kills that mortgage is none of the above. Rather, your actions can kill your mortgage.
As a final check on your mortgage, a lender will do one more credit check to ensure there have been no changes. If, like many other couples before you, you have gone on a bit of a splurge buying furniture, drapes, and electrical products, you may find that your debt-to-income ratio is such that you are no longer a safe risk when it comes to a mortgage.
There is a simple lesson to all home buyers here – don’t start to splurge on homewares on credit until after you have settled on the home. If you do, you may find you have no mortgage, no home to move into, and truck load of furniture and homewares to deal with.
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