Ohio’s housing market has picked up steam over the last few months. There are plenty of things that prospective Ohio homebuyers should not do, and this article could exceed 5000 words if we discussed them all. So let’s just look at the important ones.
With so many residents in Ohio looking to buy a home, with either FHA, Fannie Mae, Freddie Mac, VA, USDA, now is a great time to go over
6 absolute Do Not’s when purchasing a home in Ohio
- DO NOT finance a new car, boat, RV, furniture, or any other large purchase. Worse case, the new payment could impact your debt to income ratio, causing your approval to turn into a denial. Best case, it will cause a delay when the lender runs your credit report right before closing.
- DO NOT apply for any other financing, no matter how small. Credit cards, cell phone, Lowe’s credit card with 0% financing, etc. This could cause delays when the lender sees the new inquiry or new debt on the credit report pulled immediately before closing.
- DO NOT plan a vacation for the middle of the loan process. As good as your loan officer may be, they cannot make documents magically appear because you are unavailable.
- DO NOT quit your job. Even if you are offered a better job, drag it out until your purchase has closed. Switching jobs during the loan process could require as much as 30 days of paystubs for your new job, and possibly your loan being declined.
- DO NOT make large deposits that you cannot easily document. Lenders now require a deposits they consider “large” (in my experience as little as $250) to be explained and/or paper trail provided.
- DO NOT stop making payments on anything, no matter who tells you otherwise. One late payment on a credit card could cause your credit score to drop drastically, and if the lender requires an updated credit report that lower score could cause your rate to go up, closing costs to go up, or worse…your loan to be declined.
Homebuyers in Ohio seeking a mortgage need to follow these 6 rules religiously, as they can be the difference between a happy new homeowner or a disgruntled new renter.
Your loan officer should be a resource of information, I always stress that my clients call me anytime day or night if they have questions. I’d rather take 5 minutes out of my weekend to answer a question that may save a client from making a mistake.