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List of Don’ts

Actions to avoid while on the way to purchasing a home.

by Jill Santandrea, Broker Manager, EXIT Homestead Realty Professionals

Many first-time homebuyers are surprised to discover just how many ways you can mess up a home purchase. You may have gotten your pre-approval, found a home you loved and made an offer. But if you want to avoid jeopardizing the transaction, you will need to be extremely careful until the sale has closed.

• Don’t Apply for a Credit Card: Opening a new credit card can poorly affect your credit score, which is the opposite of what you want when looking to buy a home.

• Don’t Buy a New Car: Auto loans will affect your ability to purchase a new home no matter how large or small the loan.

• Don’t Change Jobs: Lenders want to see that you have a stable financial income. If you change jobs while in the middle of the homebuying process it could delay homeownership. Keep your job move under wraps until after the closing takes place.

• Don’t Miss Loan Payments: Keep payments current on all your loan accounts. The lender will look at your credit again before finalizing your mortgage, and if you’ve missed any payments, it may lead to you losing the loan. Many buyers mistakenly believe that once the lender issues their loan commitment, they are golden. Not so!

• Don’t Splurge—Save, Save, Save: Avoid buying a latte, updating your wardrobe, or going out to eat. Be sure you have money saved for all home expenses.

• Don’t Make Large Cash Deposits: Making a large cash deposit into your bank account could strike a red flag with lenders.

• Don’t Consolidate Your Debt: This may be tempting when you finally start looking at buying a home. Consolidation may not improve your credit in the way you expect, so be sure to read all the fine print regarding hidden fees and interest rates.

• Don’t Change Your Banking Institution: Doing so before getting your loan can disrupt everything. Your banking history and status is part of the equation that leads to you getting pre-approved.

• Don’t Buy Furniture or Household Goods on Credit: You found your dream home, you got pre-approved, contracts are done. Makes sense to want to start buying furniture and appliances to fill it up and make it truly yours, right? Don’t do it! New debt will change the state of your credit and may lead to the loss of your loan approval.

There are many other things to avoid. I can help you to handle your loan and answer your questions. My final words of wisdom: “Buy with your head, not with your heart.” It is easy to overspend when you are in a bidding war for the house you love. Don’t put yourself in that position.

Until next week…

Jill Santandrea, Broker Manager, EXIT Homestead Realty Professionals LLC, 1070 E Chestnut Ave, Vineland, NJ 08360; 856-692-EXIT; Cell: 856-362-0967; Direct: 888-856-5455;; E-mail:; Text JillS to 85377 for my mobile business card. Listen to Jill on 99.9FM SNJ Radio Today. Source: 2019 Buffini & Company