|Ten Ways to Ruin Your Dream of Home Ownership
Financing the purchase of your first home can be stressful, if for no other reason than it will be one of your largest financial transactions in your lifetime. When you are ready to commit to buying (and financing a home), you want to maximize the possibility of being successful in your efforts, so consider avoiding the following situations:
1. Shopping for a home before you consult with a competent loan originator. As you probably wouldn't start on a trip to a distant destination that you had never been to without a road map, you surely wouldn't attempt buying a home until you know what you can qualify for, normally through a prequalification. Reviewing your amount and types of income, debts, liquid assets, credit record and other factors, will ease the route to home ownership.
2. Failing to disclose everything to your loan originator. When in doubt, mention it! Loan originators can do a better job if they can address potential problems in advance rather than at the last minute. When problems surface at the last moment, they are much harder to deal with than working on them from the beginning.
3. Spending your savings on anything other than bare essentials once you are committed. It's better to save the money, at least until your new home loan closes. If you still have a strong desire to spend the money after closing, you still can, but the likelihood that you will after closing is greatly diminished.
4. Buying major items like an automobile, major appliance, window coverings or an unnecessary adult "toy". If you are relocating to Alaska, you don't need to buy a new, four wheel drive utility vehicle or an expensive motor home. The typical vehicle payment is half or more of a monthly payment on a new home. Remember, the number one goal is to get into a new home, and not to have a vehicle whose four wheel drive option typically isn't needed for the bulk of driving in Alaska.
5. Applying for, obtaining or using your credit cards. More monthly debt impacts your home purchase. Numerous credit inquires on your credit report, while explainable, also affect your credit score.
6. Quitting or changing your job, or taking a promotion and a raise or drop in pay. Any significant change in your ability to continue earning income as documented can have an impact on your ability to qualify for and close on a home loan. Consult with your loan originator and other competent professional sources, such as your attorney, CPA or Realtor when such possibilities arise.
7. Separating from or filing for a divorce or dissolution from your spouse. If your life is changing, seek advice before reaching any decision. If you are going to purchase and finance a home, work with your loan originator in addition to other professionals prior to proceeding with any legal proceedings.
8. Suing or getting sued. Litigation is costly and often times devastating to your financial security. Avoid, to the extent possible, any legal difficulties or actions because the costs in all likelihood will be high, both financially and emotionally.
Article continued at http://www.alaska.net/~premier/tenways.htm