OK, so your home finance has been pre-approved and you have found your ideal home. DO NOT assume that this is the finish of all of your hard work. You have definitely finished most of it (pat yourself on the back) however you still have to make sure that you avoid doing certain things in order to make the house purchase as smooth as possible.
AVOID CHANGING JOBS
We are all tempted by a higher paying job in a better environment, however if you have a contract on a home now is not the time to change your job. I could really delay home ownership (especially if the contract falls through and if you do not find a property during the pre-approval time limit). Banks want stability!
DO NOT MOVE HOME TOO FREQUENTLY
As I have mentioned above stability is what the banks are looking for so ensure that you are not moving around too much.
ENSURE THAT YOU HAVE A MONEY TRAIL
Do you really have savings in the bank? Have you saved those funds or are they a loan from a family member? Make sure that you really do have those funds and that they have a money trail. You want to prove that it is not a loan and that you saved the money yourself.
DO NOT APPLY FOR A NEW CREDIT CARD
Applying for a new credit card can look poorly on your credit rating, as the banks usually add your credit limit as a debt (even if you have not spent one cent on the card). The more enquiries on your credit the worse your score is.
DO NOT BUY A NEW CAR
So you have pre-approval and you know that you can borrow money (your credit rating is obviously good enough now), this is an exciting time for you. It is definitely not the time to start shopping for a car – unless you want to live in your car instead of your home….
DO NOT OWE MORE THAN HALF OF YOUR CREDIT CARD LIMIT
Ask your broker for advice – but most banks will look negatively on a credit debt that is in excess of 50% of the limit.
DO NOT GET BEHIND ON THE PAYMENTS
Ensure that you are on top of all of your bills, your rent, credit card/s, phone, electricity etc. This is super important!
DO NOT EVEN LOOK AT NEW FURNITURE
We have all done it, arranged where you are going to put the furniture before you have settled on the property. (As an agent we know that a prospective purchaser or tenant will be moving forward with a property if they are imagining where they will put their furniture.) Avoid it at all costs!
DO NOT SPEND YOUR SAVINGS
You will need them, either for solicitors fees, stamp duty, payment of a credit card etc.