If you are looking at buying a home in San Diego in the near future these tips will help you properly prepare your finances to do so.
Preparing your finances in order to secure a home loan is one of the most important steps you can take in the buying process. What are the best methods to utilize in order to properly prepare your finances? Here are a few tips on getting everything in order.
Showing stability to lenders is important to securing a loan. Some of the best ways to show stability are to maintain employment and to stay with your bank during the process. The time when you are applying for a loan or going through the closing of a home is not the best time to quit your job or switch your bank if it can be avoided.
Avoiding Big Purchases and Financing
The time before you apply for a loan and are going through with the purchase of a home for sale in San Diego is the time to avoid any large or unnecessary purchases, especially that involve financing. Avoid purchasing and financing a vehicle, putting furniture on your credit cards, or apply for new credit cards.
Staying on Top of Your Finances
Regularly paying on your credit cards or other loans will help to show stability to your lender. Additionally, it is highly advised that you avoid co-signing any loans for others as it will increase your debt-to-income ratio and may negatively affect your ability to get a loan. It is a good idea to make any large deposits into your bank account so that they can sit in for at least two months, what lenders typically refer to as seasoning.
While you would not intentionally lie on your application, you don’t want to be seen as trying to put anything by your potential lender, so make sure you are thorough. Being thorough includes making sure you have applied with all debts and liabilities listed on the application as well as an accurate representation of your income.
Following these steps will help the process of purchasing a San Diego home for sale go smoother than if you had not taken these precautions and preliminary measures.