Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

7 Things to Avoid while Buying a Home

By Ashokalion Subscribe to RSS | July 12th 2012 | Views:
loading
 
  



Diminishing home prices and low mortgage rates have made purchasing of homes more affordable for the first-time buyers in Houston and Dallas. The favorable mortgage rates have made it affordable for the first time buyers and renters to buy a home of their own. As real investment property advisors, we advise the first –time home buyers to keep certain things in mind while buying a house. Here are few factors that you should avoid while buying a house.

1. Don’t apply for multiple credit cards: Multiple loans, new credit cards, and lines of credit will have a negative impact on your credit score as it will enhance your credit utilization; moreover lenders are very suspicious about borrowers with a huge amount of consumer debt.

2. Ignoring the demands of lending institutions: If you do not want any hassles in procuring loans, you should respect the demands of your lending institution. You should keep in mind that pre-approval of loans does not indicate the end of dealings with your lender. The lending institution or the lender would require various documents such as your bank statements to approve the mortgage. Failure to submit these documents would create substantial problems for you to buy your home.

3. Paying off debts: While you get ready to buy a home, you may want to pay off all the debts. Ideally, before taking the final decision on this, you should consult a mortgage advisor who could guide you accurately to assess if your current financial situation is good enough to make debt payments. Even if you pay off the debts, do not cease the accounts so as to prevent your credit score from going down. It is recommended to leave your accounts open without a balance.

4. Avoid changing banks: Always remember that while the lending institution/lender evaluates your mortgage pack, you will be asked to provide the lender with bank statements of your saving accounts as well as checking accounts along with money market accounts, if any. Generally, lenders ask for the bank statements of last three months while conducting the review process. Providing the lender with a precise documentation is essential as it helps detect fraud and the lenders can be confident of how you make money. Frequently changing banks and transferring cash to another account can prove to be troublesome for you as it would make it difficult for the lender while documenting your funds.

5. Avoid job hopping: A stable career history is an added advantage for you. A steady job history helps the lending institutions to qualify you for the applied mortgage package. Changing jobs frequently may help you to become eligible for your loan but if changing careers before you qualify can stall the process thus preventing you from being qualified for the mortgage.

6. Avoid making a major purchase before you buy the house: Do not make any major purchase before you buy the home you are planning to purchase as making major purchases during this period can seriously affect your debt-to-income ratio thus preventing you from purchasing the home. This is a common mistake done by a majority of several first-time buyers which have marred their chances of buying a home.

7. Avoid making major purchases after you buy a house: You should also avoid making major purchases soon after buying the house as you should provide some time for your credit to recover before making another major purchase.

Ashokalion - About Author:
Jay Raman is the broker of record for The Lion Real Estate Group, a Houston and Dallas area brokerage focused on working with investors and homeowners buy, lease, or sell their property. Jay and his team have been in the investment property Houston and association management business for the past 6 years and manage over 160 residential (single family home) properties in Houston and Dallas as well as several associations. To get more great articles or ideas, you can also visit the Lion Real Estate Group’s Website, Facebook or Twitter Account.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/real-estate-articles/7-things-to-avoid-while-buying-a-home.htm

Related Real Estate Articles Subscribe to RSS

Purchasing Real Estate in Costa Rica: an excellent move to investment opportunities
Published by Sandra Michilov on July 11th 2012 | Real Estate
It is an understatement to say that purchasing real estate in Costa Rica is booming where land value...
 
Bookings of residential property in Gr Noida is back on track
Published by Sanjay Kumar on July 20th 2012 | Real Estate
Apartment bookings in Greater Noida close to Delhi have resumed once authorities recently approved a...
 
How you can buy residential property on rent
Published by Glyn Jones on June 11th 2012 | Real Estate
Apartment buildings are more complex. Often, people are already living in the suites, and it simply ...
 
Port Washington property a true place to gamble your money
Published by Jack Smith on July 17th 2012 | Real Estate
People are ready to gamble their money, but everybody wants to make good money from their investment...
 
The demand of property in Delhi NCR
Published by Maaya on May 24th 2012 | Real Estate
Having an own land or property in Delhi NCR is like a dream, the prices of properties are increasing...
 
Get the best value of your property with Folsom Property management
Published by Nishaidhijames on August 23rd 2012 | Real Estate
Sale and purchase of property is an important part of man’s life. A person always tries to buy a h...
 
Hurry up to purchase your dream property in Aruba
Published by Sothebysrealty Aruba on March 16th 2012 | Real Estate
Due to an increase in the importance of Caribbean land, the real estate business in Aruba is the pro...
 
Tips on running a commercial property management firm
Published by Carolmoore on March 1st 2012 | Real Estate
Owning property can make you set for life. Considering the high prices of land, owning a piece can b...
 
HOA management- Capable providers for financial as well as property management
Published by Ema Sis on January 12th 2012 | Finance
HOA management companies shall be actual asset for communal administration amenities. They undertake...
 
Residential real estate investment-things to consider
Published by Deepti on May 9th 2012 | Real Estate
With increasing prices of the residential real estate, there has been increasing number of real esta...
 
Finding property and buying it becomes with help of Real Estate Agents
Published by Melbourne Realestate on June 28th 2012 | Real Estate
If anything is done by the profession that creates a great impact. Same is in the case of real estat...
 
Building a "Buy to let" property portfolio
Published by Jordan Beard on May 9th 2012 | Real Estate
Investing in a portfolio of rental properties in desirable areas throughout the UK is a sure fire wa...
 
Delimitate facilities with affordable investment in residential property
Published by Bhubaneswar Property on May 14th 2012 | Real Estate
The most prime factors for choosing flat at Bhubaneswar are very good communication, close to IT Sec...
 
Choosing trustworthy property consultant is beneficial
Published by Deepti on May 4th 2012 | Real Estate
Mohali is a full-fledged market of real estate. It is major part of tricity though it has now a sepa...
 
Why one should invest in property in Greece?
Published by Greekexchange on January 10th 2012 | Real Estate
Greece is one of the most beautiful places in the world; people from all over the world visit this c...
 
Get a good office property in Gurgaon
Published by Atul Sharma on May 21st 2012 | Real Estate
The article is based on real estate property in Gurgaon. It talks about how you can get a good prope...
 
Greater Noida property getting costlier
Published by Sanjay Kumar on August 1st 2012 | Real Estate
In the commercial category for IT/ITES properties, consumers can ought to shell out Rs 29515 per sq ...
 
 
Real estate agent is helpful to find suitable property to invest
Published by Glyn Jones on January 13th 2012 | Real Estate
The estate agents can be very much helpful in finding the right kind of property or investing in the...
 
Looking to buy a commercial property in Gurgaon?
Published by Mike Nicholson on March 20th 2012 | Real Estate
Do you want to have your office at a prominent location where you can proudly invite your clients? D...