A few weeks ago we looked at some of the mistakes you’ll want to avoid when selling your home on Lake Nacimiento.  As a Lake Nacimiento Real Estate agent, I’ve also seen many people interested in buying a home in Oak Shores or Heritage Ranch given the current low mortgage rates and ideally priced homes along Lake Nacimiento, so I thought today we could review a few mistakes that you don’t want to make when it comes to buying a home!

Since banks have tightened the reins on who qualifies for a home loan, you want to make sure that your credit and personal finances are in good order before you begin the home buying process, as well as up until the time you close on your home.  Oftentimes buyers feel they can breathe a sigh of relief once they’re approved, but find out that problems arise prior to closing.

In order to avoid any mishaps during the home buying process when it comes to your financing, take a look at these four tips!

1. Avoid any major purchases before closing your mortgage loan- Just because you have your mortgage approved and lined up doesn’t mean the deal is done.  Banks are not afraid to pull out of the deal if they see the homebuyer makes a significant purchase such as a car or another major buy.  They see this as a sign of further debt for the homebuyer and are nervous about the potential risks if the buyer can’t come up with the money. To be safe, avoid any major purchases until after your signed the contract on your Lake Nacimiento home.  This goes for cash purchases as well since banks will look at your cash reserve before you get approved for a loan.

2. Don’t make any big career changes- While this may the reason you’re searching for a new home on Lake Nacimiento, it’s better to avoid any career changes during the home buying process.  Banks want to know that your financials are stable.  If there is a career change pending, try to delay it until after you’ve bought the home.  Or, delay the home purchase if at all possible until you can show that your new job is given you the financial resources to pay on your new home.

3. Prepare for a last-minute credit check- This may come as a surprise to some, but with Fannie Mae’s loan quality initiative that came out in June of this year, lenders are likely to do a second credit check right before you close. Make sure that you keep up with your credit card payments and avoid applying for a new credit card during the home buying process as they may see this as a sign of desperation and can call for another credit score check, which could hurt your credit score.

4. Watch out for closing-cost surprises- Avoid putting all of your money into the down payment as you’ll need cash for closing costs. Don’t be caught off guard!  At times, closing costs can be as much as 3% of the home price, so be sure to keep this in mind and set enough aside.

With these tips in mind, you should find that once you’ve been approved for a mortgage, there shouldn’t be any issues that arise along the way.  If you have been thinking about buying a home on Lake Nacimiento, whether as a vacation getaway or a permanent residence you’ll find there are a variety of great homes on the Lake Nacimiento Real Estate market!

Finding a home that fits your needs, budget and lifestyle is something I enjoy helping clients find on Lake Nacimiento, so feel free to contact me today to get started with your Lake Nacimiento home search!

Grace Borzini

Your Local Lake Nacimiento Real Estate Expert
Oak Shores Realty

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