There are always a few Michigan home buyers that don’t “get it”. They go out and do things that screw up their home purchase. They never thought through what they were doing. They had a one track mind and that their new home purchase was locked in. Your home purchase and mortgage approval depend on 3 things….. good credit, your income, and how much you owe. So don’t do these three things.
- DON’T QUIT YOUR JOB. Believe it or not there is one person that quits there job now and then right before the closing of their new Metro Detroit home. Banks and lenders call your employer usually a day or two before closing to verify your employment. They will find out if you quit.
- DON’T TAKE A LOT OF TIME OFF. Banks figure your income based on your last two years income. The more time you take off can influence how big of a house you can qualify for. The bank’s underwriter looks at your year to date income. If it is lower than the average from the previous year it could influence your debt to income ratio. Which then in turn determines the home price you can afford.
- DON’T GO ON A BUYING SPREE. Don’t buy a new car, or buy all that new furniture that you want for the new home. All of that can wait until the day after your home closing. Your mortgage approval and your new home is based on what they call the debt ratio. How much you owe versus how much you make. If you go over the banks ratios they won’t give you the loan. So don’t buy until after the house deal is closed.
- DON’T STOP PAYING YOUR BILLS OR LET A BILL GO TO COLLECTION. Late payments or collections can ruin your chances to get a mortgage.
It does not matter whether it is a Plymouth real estate, a Canton home, or Brighton real estate. Anything that can stop you from getting your mortgage approved can stop you from getting your house. So keep paying all your regular payments on time, even if you have to borrow the money. Don’t buy any big items or run up your credit cars. And most important keep your job!
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Russ Ravary Your Oakland, Livingston, and Wayne County real estate agent
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