Before You Purchase Your HomeOwning your own home is one of the great pleasures and privileges of the modern world. All too often potential home buyers make choices before they purchase a home that make the process more difficult, time consuming and expensive. When you decide that you are going to buy a home in the near future you need to exercise some financial discipline, because that is the one thing that lenders are looking for when you apply for financing.

The thing is, it is easy for them to use public information to make a judgment about whether or not you are someone who will pay your mortgage on time every month. So to get in shape for your big purchase you need to make a commitment to financial responsibility and refrain from making any big purchases or changes in your financial status.

Avoid Making These Common Financial Mistakes

Members of The National Association of Realtors have seen it all when it comes to self-defeating financial habits. Too many times from the beginning of their careers, realtors do all the groundwork with potential buyers only to find that the buyer can’t get the terms that will make the sale possible, because of something that they have recently done or is on their credit record.

Realtors either learn to qualify these things quickly or they don’t make it in the business. For that reason realtors can often seem a little non-committal until they are sure you aren’t about to go out and buy a new car or something.

Do Not Do These Things Before You Buy (Just Don’t!)

The National Association of Realtors Website has a good explanation of what not to do, because trust me, these are sore points for every experienced realtor.

  • Close credit accounts
  • Open new credit accounts or otherwise apply for credit
  • Buy a car
  • Change your job
  • Miss any payments
  • Shift bank deposits around without a clear paper trail for the money
  • Spend your savings
  • Take on new financial obligations or loans

Disappointed Spouses Are Bad News

If you are in a couple, make certain that you are both on the same page and you each understand the importance of financial restraint leading up to the time you buy your home. The disappointment of a spouse’s irresponsible actions can be devastating.

Once the process is complete and you own you home it is very rewarding to settle into your own home. A bit of financial self-discipline before you buy will make the process easier and less painful along the way.