2 major issues that can go wrong when you’re buying a home

| Mar 1, 2021 | Residential Real Estate

Buying your first home is incredibly exciting, but it’s also a time that can be riddled with peril if you’re unwary.

First-time homebuyers, in particular, are most prone to make two big mistakes that could delay — or end — the deal on their new home.

  1. You did something that damaged your credit.

Maybe you forgot to budget for the closing costs. When you realized it, you skipped a couple bills to pull the money together. Unfortunately, the bank may run a final credit report on you just before closing. If those missed payments show up, your mortgage loan could vanish.

 

Or, maybe you got really excited about the plans for your new home. In anticipation, you opened a couple new credit cards or accounts at the local home improvement store or furniture gallery. That changes the debt-income-credit balance you have and can alter your credit score significantly, even if you haven’t purchased anything yet.

  1. There’s been a sudden change in your employment.

Maybe your job loss was unexpected, but you’re 100% certain that you have transferable skills and you’ve already got offers on the table. You may not be worried about your ability to pay the mortgage loan, but the bank could be.

Alternatively, maybe you planned to switch jobs all along, so this was either a lateral move or a promotion that was long in the making. You don’t see that as a bad thing, but your lender may see that as instability. Their definition of “steady” employment may be different than yours.

The best way to protect yourself when buying real estate is by being proactive. Working with an experienced Bronx attorney from the very start can help you avoid common mistakes that could ruin your plans.