If you're in the market for a new single-family home, you've probably taken steps to make sure that the process goes smoothly. You've made sure that your credit score is where it needs to be. You have a steady source of income, and you've got your down payment. That should be everything you need to make sure that you qualify for your new home. Unfortunately, that might not be the case. There are still some issues that can pop up and derail your efforts to purchase your new home. Before you make a mistake that will make it more difficult for you to buy a home, take a look at three scenarios that can cause serious problems.
You Missed a Few Payments
If you're going to be purchasing a new home, maintain control of your credit. Even if you've paid all your bills on time for years, a few missed payments can cause serious delays when it comes to buying a new home. While you're in the process of securing a loan for your new home, make sure that all your bills are paid on time. In fact, be sure to continue the on-time payments until you've signed the final loan docs and you have the keys to your new home in your hand.
You Didn't Consider the Added Expenses
If you're in the market for a new home, you need to pay attention to the actual costs. If you just look at the cost of the house, you could end up doing yourself out of a home loan. This is particularly true where planned communities are concerned. If you were pre-approved for a loan, your lender gave you a specific limit to work with. However, once the home is packaged for your loan, the lender will look at all the costs associated with ownership, including the HOA fees. If your added HOA fees price you out of the home, your lender may not approve the final loan. Avoid the hardship of being priced out of your home loan by considering all the added expenses.
You Chose to Forego the Home Inspection
If you're looking for a loan for your new home purchase, don't forego the inspection. The home inspection may seem like an unnecessary step, but it can actually mean the difference between approval and denial where the loan is concerned. If major defects are found during the loan process, your approval could be delayed or canceled.