Buying a home is a very large purchase that many people will be paying off for decades to come. In order to look financially responsible in the eyes of lenders, it is crucial that you avoid other large financial decisions a few months prior to buying a home. That’s because your debt-to-income ratio won’t be in your favor. Today, let’s look at a few of the financial obligation no-no’s to steer clear of.
Sure, we all need to get around, but sometimes the vehicle we already have is good enough. It may not be the newest or look the sleekest, but if they’re able to get you from point A to point B with little hassle, then you should probably hold off on purchasing a new one. And this isn’t only limited to cars. This also includes motorcycles, boats or any other large vehicle. Try avoiding this type of large purchase when planning to buy a home.
If you are planning on purchasing a home in the coming year or months, you may want to limit the amount you put on your current credit card, unless they are absolutely necessary expenses. This may require you to be content with your wardrobe or stay in more often, but it will make you look more financially responsible. You should also avoid opening new credit cards, as this might hurt you when searching for a future home.
Other Large Debt
Credit cards and cars aren’t the only things to avoid when you are a prospective home buyer. There are other forms of large debt you should try to avoid. This includes things like student loans for you or your children, or any form of loans that may make your monthly obligations higher.
For those looking to purchase a new home in the greater Encinitas California area, I’d be happy to help you on your journey. Contact me about current listings and upcoming open houses. I look forward to guiding you on this home buying journey.