The 10 Buyer Commandments: Essential Guidelines for a Successful Home Purchase

When it comes to buying a home, there are certain rules that buyers should follow to ensure a smooth and successful transaction. Consider these guidelines as the 10 Buyer Commandments, essential principles that can help you navigate the home buying process with confidence and financial prudence. In this blog, we will explore each commandment in detail and understand why they are crucial for a successful home purchase.

1. Maintain stable employment:
The first commandment emphasizes the importance of stable employment. Lenders prefer borrowers with consistent income sources, so it’s advisable to avoid changing jobs during the home buying process.

2. Avoid purchasing a car:
Acquiring new debts, such as buying a car, can negatively impact your mortgage application. Lenders assess your debt-to-income ratio, so it’s wise to delay major purchases until after securing your home loan.

3. Use credit cards sparingly:
Excessive use of credit cards can increase your debt load and affect your credit score. It’s best to keep your credit card balances low and avoid maxing them out during the home buying process.

4. Preserve your closing funds:
Closing costs and down payments require significant funds. The fourth commandment advises against spending these funds on other purchases to ensure you have enough to complete the home purchase.

5. Refrain from financing furniture:
Although it may be tempting to furnish your new home, financing furniture can impact your debt-to-income ratio. Delay these expenses until after closing to avoid any complications.

6. Steer clear of cosigning loans:
Cosigning a loan for someone else can put your own financial stability at risk. Lenders will consider this additional liability, potentially impacting your borrowing capacity.

7. Maintain your current banking arrangements:
Changing banks during the home buying process can cause complications. Lenders prefer stability and consistency, so it’s best to keep your banking arrangements unchanged until after closing.

8. Disclose all debts in your loan application:
Honesty is essential when completing your loan application. Omitting debts or financial obligations can lead to serious consequences, including mortgage fraud charges.

9. Avoid large bank deposits:
Unexplained large deposits in your bank account may raise red flags for lenders. It’s advisable to keep your financial transactions transparent and document the source of any significant deposits.

10. Minimize new credit inquiries:
Applying for new credit can impact your credit score and raise concerns for lenders. During the home-buying process, it’s best to avoid opening new credit accounts or making excessive credit inquiries.

Conclusion:
Following the 10 Buyer Commandments can significantly increase your chances of a successful home purchase. By maintaining stable employment, managing your finances responsibly, and adhering to lender guidelines, you’ll be well-equipped to navigate the home-buying process with confidence. Remember, these commandments are designed to help you make informed decisions, protect your financial well-being, and secure your dream home.

So, embrace these commandments and embark on your home-buying journey with clarity and assurance. Happy house hunting!