Are you considering purchasing your first San Antonio home? If so, congratulations! You are making an excellent financial move. There are, however, a number of factors that you must remember when obtaining a home loan and purchasing your first Bexar County home:
- Don’t make any large purchases before closing – Don’t make the mistake of spending money on a big-ticket item before you close on your home. Taking out additional loans in the midst of asking a lender to approve you for a mortgage could be a huge mistake, as it could raise your debt-to-income ratio into the “danger zone.” In other words, it can raise a red flag with your lender that you are simply under the thumb of too many debts and not enough income.
- Don’t change jobs before closing – In fact, keep your job for as long as possible to avoid looking like a risk to lenders. A steady job for a steady length of time reflects positively for you in terms of financial stability. In other words, a lender wants to know that you aren’t hopping from job to job, as this sets off an alarm with a lender. The bottom line: too many job changes spell financial irresponsibility in the eyes of a lender.
- Let common sense, not emotions, to be your guide when purchasing a home - Make a list, check it twice and come armed with it when looking at houses. Know what you want and what you absolutely must have. Therefore, you will likely not get caught up in falling in love with a home that simply isn’t practical for your lifestyle or your budget.
- Get a great real estate agent – Your first home purchase will often be filled with questions and uncertainty, which is why the presence of a qualified real estate agent is invaluable. Take your time and find an agent who: (a) has a good understanding of the market; (b) has experience and education under his or her belt; and (c) has developed a good rapport with you.
- Don’t forget about comprehensive homeowners insurance - With all of the commotion surrounding purchasing a home, many buyers gloss over the fact that a comprehensive homeowner’s insurance policy is essential for protecting yourself, your family and your assets. Take the time to find a policy that suits your needs and your budget!