10 commandments of real estate

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10 Commandments ofReal Estate

If youre considering purchasing a home, its likely youve already taken a good hard look at your credit history. Its important that you do so because a loan officer is going to look at your history and your credit score to determine not only your financial worthiness when it comes to buying a home, but also how much money you should be able to borrow for your new home.

If you are working with a lender or a real estate agent, they will tell you things that you can do to better your credit and things you should do during the lending process so you dont kill your chances of a new home loan.

When it comes to preparing for a home loan there are 10 commandments that you need to follow to ensure that you get the best loan to purchase your future home.

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1. Keep your job! Do not change jobs, do not become self-employed, and certainly avoid quitting your job. You need to have a good employment history of at least 2 years and sometimes more if youre self-employed.

2. Do not buy a car or truck. This is considered a major purchase and should definitely be avoided until youve closed on your mortgage.

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3. Pay attention to your credit. Dont charge any big purchases and dont spend too frequently. Also make sure that all of your credit cards are paid on time.

4. Make sure that you have money set aside for the closing of your future home and that you dont touch that money until its time to close.


5. Make sure that you list all of your debts on your loan application. Leaving something out that the lender finds out about later will make it harder for you to get a loan.

6. Do not change bank accounts. It looks better if you keep things stable and that includes things like keeping the same job and using the same bank account.


7. Do not buy things like furniture or appliances and if you do, do not buy them with credit.

8. Do not originate inquiries into your credit. This means you should avoid applying for new credit or for additional money from your creditors.


9. Avoid making large or out of the ordinary deposits into your bank account without the approval of your loan officer. Usually, this wont be a big problem when youre going to purchase a new home, but youre better off checking with your loan officer before taking it for granted and depositing a large amount.

10. One of the most important rules on this list is to never co-sign for a loan for anyone. You should never co-sign unless youre willing to bet your good credit on someone else. Even if youre comfortable doing that, you should definitely avoid co-signing when your attempting to get a home loan. You need to build the best credit score possible, and you cant do that when youre signing for someone elses loan.


Preparing to buy a home doesnt have to be a difficult process. As long as you ensure that you follow these 10 commandments, you will be well on your way to owning your new home.http://michaelputnam.com

Website: http://michaelputnam.com/Michael Putnam [email protected]: http://michaelputnam.com/10-commandments-of-real-estate/

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