10 Surprising Things You Should Not Do Before Buying a House | OriginPointBUYING A HOME by The Copy Studio | 4 min read Buying a home is a major milestone, but there are a lot of decisions to be made between starting your search and getting the keys. You’ll likely compare homes, apply for a mortgage, make an offer and take the many steps it requires to make it to the closing table.Think homeownership could be in your future? Get pre-approved today to start exploring your options.10 Things to Avoid When Buying a House With so many moving pieces, knowing what not to do could be just as important as knowing what comes next. A few financial missteps before or during the mortgage process could affect your credit, loan qualification or ability to close on schedule.Here are the top 10 things to avoid when buying a house:1- Don’t shop for homes without getting pre-approved first Before you begin seriously combing through listings online, stop, drop and get pre-approved. Mortgage pre-approval could give you a clearer picture of your potential financing range. That way, you’re not falling in love with homes that are outside of your budget.It could also help you make a stronger offer by showing sellers and real estate agents that you’ve already taken an important step in the financing process. And as the old saying goes, money talks.Unlike most lenders who take a number of weeks to complete the process, OrinPoint’s Digital Mortgage makes pre-approval quick and easy. You could also explore PowerBid Approval to help show sellers you’re serious, financially-backed and ready to buy.2- Don’t assume you need a 20% down payment Don’t put off buying because you think you need to have 20% tucked away in a savings account. Down payment options as low as 3% may work fine — and could potentially get you into a home much quicker than waiting to save up 20%. Plus, getting into a home sooner allows you to build equity faster!However, mortgage insurance is required when a buyer puts less than 20% down — which adds to your monthly payment. The good news is that mortgage insurance may be removed once you’ve built up a certain amount of equity in the property, depending on factors such as your loan type.3- Don’t buy a home that doesn’t fit your budget Remember, the amount you’re qualified to borrow and the amount you feel comfortable spending aren’t necessarily the same. Lenders may offer you a $400,000 mortgage, but if you can’t afford the monthly payments and other homeownership expenses (such as property taxes and insurance), that’s not your realistic budget.A mortgage calculator can help you figure out the amount that makes the most sense for your budget, so you can feel comfortable about your ability to afford the monthly payments without overextending yourself.4- Don’t forget you can “date the rate, but marry the house” Buying a home is a long-term commitment, but getting a mortgage should be a relatively simple process. Keep this in mind as you’re considering your options. You may be tempted to wait for mortgage rates to come down so that your monthly payments are a little lower.* But, if you do this, you may miss the chance to buy the home you love.Additionally, you may be able to refinance your mortgage should rates come down in the future. This may help you lower your monthly payment. Think of it as breaking up with your rate and getting a new, better rate. You can also refinance to shorten your loan term, change from a variable rate to a fixed rate and even take out cash** to use for renovations or debt consolidation.5- Don’t make a big purchase using debt Thinking about financing a new car, furniture or another large purchase? Consider putting it on pause until after your mortgage closes.New debt could change several parts of your financial profile, including your credit score and debt-to-income ratio (DTI). Your DTI compares your monthly debt payments with your gross monthly income and helps lenders evaluate your ability to manage a mortgage payment.Taking on new debt after you’ve already applied could be especially problematic. Lenders may have to re-verify your financial information before closing and major changes could affect your loan qualification or require additional documentation.Before making a significant purchase, talk with your Loan Officer about how it could affect your application. Learn More: The Six Most Common Homebuying Mistakes You Could Avoid 6- Don’t ignore your credit history From a lender’s perspective, it doesn’t look great when you constantly avoid paying your credit card bills on time. Don’t forget that your payment history, existing debt and other credit details affect both your eligibility and the rate you receive. Because your credit history is an important part of your mortgage application, it’s a good idea to check your credit report before applying. If you spot any inaccuracies, dispute them as early as possible. And as a best practice, continue making all your payments on time and avoid any unnecessary new credit applications while preparing to buy. 7- Don’t max out any of your credit cards 1 If you have a $10,000 credit card, you don’t want to have a $9,000 balance sitting on it. Credit utilization, or the amount of revolving credit you’re using compared to the credit available to you, could negatively affect your credit score. Keeping balances relatively low could help protect your credit profile while you’re preparing for a mortgage. If you come close to your spending limit, it could trigger lower FICO scores and thus a higher rate of interest on your mortgage. Try not to spend more than 30 percent of your limit on any credit card and pay off your card balances each month, when possible. 8- Don’t cosign a loan If you’re planning to buy a home soon, you may want to reconsider offering to be a cosigner on a loan. Cosigning a loan isn’t just lending someone your good credit. You’re also agreeing to be financially responsible for the debt if the primary borrower doesn’t repay it. As a result, that obligation becomes part of the financial picture mortgage lenders consider when reviewing your application. Depending on the circumstances, it could even affect your DTI or how much you qualify to borrow. 9- Don’t change jobs Switching jobs doesn’t necessarily prevent you from getting a mortgage, but in certain circumstances, it could become a bump in the road. Lenders want to ensure that a borrower can pay off all of the principal and interest on a mortgage. Having an employment history of at least two years is the standard requirement to receive a mortgage backed by Freddie Mac or Fannie Mae. It is possible to get a mortgage without that employment history, but that could require greater scrutiny. Changing employers within the same field or moving to a position with comparable or higher earnings may be easier to document than making a major career change. However, any adjustment to your income or employment when buying a home could mean additional documentation or another review of your income before closing. If you’re considering a change, talk with your Loan Officer first to make sure you understand what it could mean for your application.10- Don’t skip the home inspection A home may look move-in-ready, but there are some issues you may not notice during a showing. That’s where a professional home inspection comes in. Home inspections protect buyers by bringing hidden issues to light before closing. Depending on the findings, you may decide to request repairs, renegotiate where you can or simply prepare for costs you could face after moving in.The home inspection is the buyer’s responsibility, so you shouldn’t wait for the seller to set one up. The cost of the home inspection, which is usually a few hundred dollars, is well worth it. After all, it gives you the opportunity to better understand the condition of one of the largest purchases you’ll ever make.Ready to start the mortgage application process? Buying a home comes with plenty of decisions. Knowing the potential missteps ahead of time could make it easier to keep your finances steady and your mortgage moving forward.Start by understanding your budget, checking your credit and getting pre-approved. Then, stay in touch with your Loan Officer throughout the process — especially before taking on new debt, changing jobs or making another major financial move.Ready to kick off your homebuying journey? Get pre-approved today and start exploring your path to homeownership.*Savings, if any, vary based on the consumer’s credit profile, interest rate availability and other factors. Contact OriginPoint for current rates. Restrictions apply.**Using funds from a Cash-out Refinance to consolidate debt may result in the debt taking longer to pay off as it will be combined with borrower’s mortgage principal amount and will be paid off over the full loan term. Contact OriginPoint for more information.1 OriginPoint does not provide credit counseling or credit repair services.Your journey home begins here. OriginPoint’s Same-Day Mortgage (aka “FastTrack”) promotion offers qualified customers who provide certain required financial information/documentation to OriginPoint within 8 hours of locking a rate on a mortgage loan the opportunity to receive a loan approval within 1 business day of timely submission of documentation and does not suggest that the borrower will receive funding on the same day as their application submission. For purposes of this offer, documents provided after 1 pm local time or on a weekend or company holiday will be deemed submitted the next business day. OriginPoint cannot guarantee that a loan will be approved or that a closing will occur within a specific timeframe. OriginPoint reserves the right to revoke this approval at any time if there is a change in your financial condition or credit history which would impair your ability to repay this obligation. Read and understand your Loan Commitment before waiving any mortgage contingencies. Borrower documentation and Intent to Proceed must be signed within 8 business hours of receipt. Not eligible for all loan types or residence types. Minimum down payment requirements apply. Self-employed borrowers and Co-borrowers are not eligible. Not all borrowers will be approved. Borrower’s interest rate will depend upon the specific characteristics of borrower’s loan transaction, credit profile and other criteria. Eligible borrowers who successfully provide all required documentation within 8 business hours will receive a $250 Closing Cost Credit applied at closing, no cash value, and may not be combined with any other Lender promotions, discounts, or concessions. Not available in all states. Restrictions apply. Visit OriginPoint.com/same-day-mortgage for terms and conditions. **Eligible borrowers must qualify for a “Clear to Close Loan Commitment” (“CTC”). OriginPoint cannot guarantee that a loan will be approved or that a closing will occur within a specific timeframe. CTC is subject to certain underwriting conditions, including clear title and no loss of appraisal waiver, amongst others. Not eligible for all loan types or residence types. Minimum down payment requirements apply. Property must be eligible for an Appraisal Waiver and borrower must opt in to AccountChek for automated income and asset verification. Self-employed borrowers and Co-borrowers are not eligible. Not all borrowers will be approved. Restrictions apply.Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply, contact OriginPoint for current rates and for more information. All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. OriginPoint, Inc. does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by OriginPoint, Inc. 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