You’ve decided to take the plunge into home buying in New Orleans. Awesome! I’m here to help guide you through all the nooks and crannies. But, there are things you should not do while you’ve begun looking for a New Orleans home to purchase. Here are the no-nos while home buying.
No-No #1. DO NOT open and close any credit cards.
For some reason, people think it helps their credit score if they close an unused credit card. This is far from the truth! Those old accounts show that have a good, long-standing relationship with other creditors.
No-No#2. DO NOT quit your job.
NOPE. I know your boss is the worst. You can’t wait to find a new job. Getting a new job while you’re in the middle of home buying is sometimes ok – as long as you’re not going from a brain surgeon to a sailor. The underwriters won’t like that and don’t think this is a stable job. If you’re moving from management in one place to management in another, that’s fine. Otherwise, suck it up buttercup, and wait till we close on your new home.
No-No #3. DO NOT make large deposits and large withdrawals.
If you’re in the service industry and you’ve been consistently making these types of transactions – that’s fine. It can be tracked. But, if grandma hands you a wad of cash to help with your home purchase, we have to handle it another way. You can absolutely receive gift funds. Your lender will tell you how to handle it though.
No-No #4. DO NOT make any large purchases.
Every time someone asks me, “what’s a large purchase?” Anything more than your groceries. Don’t be that person who goes and buys all new furniture before they actually close on their new home. You might end up with a new couch but no place to put it. Ask your lender before splurging on anything.