First Time Home Buyer Names Four Things She Would Never Do Again Including Changing Jobs and Opening New Credit Cards Before Closing on a House

Buying your first home is exciting, and it is also full of small traps that nobody mentions until it is too late. A first-time buyer who posts as @iamfaithj boiled her advice down to four short points, and every one of them is worth writing on a sticky note before you go house hunting.

She calls them “four things I would not do as a first-time home buyer,” and she gets right to it. No long speech, just the basics, delivered from the point of view of a first-time buyer.

Here is her list, along with the reasons behind each one, so you can put them to work.

@iamfaithj

1. Do not change jobs

Her first warning is to hold off on a career move. “If you change jobs, that is going to show lenders that you’re not stable enough,” she says, or that you just have not been employed long enough.

That matches how mortgages generally work. A lender wants to see steady income that is likely to continue, and many will verify your employment again shortly before closing. A new job is not always a dealbreaker, especially if it is in the same field with equal or better pay, but it can slow things down or raise questions. If a job change is unavoidable, tell your loan officer early so they can tell you what paperwork they will need.

2. Do not open new credit cards

Second on her list: do not open any new credit cards, and do not purchase a new card. It sounds like a small thing, but a new account can lower your credit score a little, and it changes the debt picture the lender uses to decide how much you can borrow.

The same caution applies to anything financed. That new living room set on store credit, a car loan or a big appliance purchase can all complicate an application. Many loan officers suggest waiting until after you have the keys. Keep paying every bill on time and keep your balances low while the loan is in process.

3. Do a home inspection

Her third point is to get a home inspection on the property so you can know all the facts about it. Think of it as a physical for the house. A professional inspector looks at the roof, foundation, electrical panel, plumbing, heating and cooling, and more, and gives you a written report.

The inspection does two jobs. It helps you avoid an expensive surprise, and it gives you something to negotiate with. Depending on what turns up, you may be able to ask the seller for repairs or a lower price, or you may decide the house is not for you. Go to the inspection if you can. Following the inspector around is one of the best free lessons in how a house works.

4. Get pre-approved before you go shopping

Her last piece of advice is to get pre-approved before you start looking at homes. She says it will save you “so much time and so much money.”

A pre-approval means a lender has looked at your income, credit and debts and told you roughly how much they are willing to lend. It is different from a quick pre-qualification, which is often based on information you supply yourself. A pre-approval letter helps you shop in a realistic price range, and sellers take offers with one more seriously. It also gives you time to fix problems on your credit report before they cost you.

A few more habits that help

None of this is complicated, but timing matters. The weeks between signing a contract and getting the keys are when small financial moves cause the biggest headaches, so treat that stretch like a quiet period for your money.

Keep your paperwork together. Lenders usually ask for pay stubs, tax returns, bank statements and identification. Having them in one folder makes things faster.
Leave your savings alone. Large unexplained deposits or withdrawals can trigger questions, so keep your down payment and closing money where it is.
Budget beyond the mortgage. Property taxes, insurance, repairs and utilities add up, and a new homeowner needs a cushion.
Shop for the loan. Compare offers from more than one lender, because rates and fees can vary.
Ask questions. No question is too basic. A good loan officer or agent would rather explain twice than have you guess.

If you take one thing from her list, make it the order of operations: get pre-approved first, then shop, then inspect, and keep your finances steady all the way through. Her four points are simple, and that is the beauty of them. Stay steady at work, stay quiet on credit, get the house checked, and know your number before you fall in love with a kitchen. Do those four things and you will go into closing day with a lot less to worry about.

Willow and Hearth