Purchasing a new home in Houston can be an incredibly exciting milestone in life! During this thrilling journey, however, it is crucial to remain calm and make informed decisions that won’t jeopardize your path to homeownership. One key piece of advice from Angel Fultz Realty to Houston homebuyers is to avoid spending cash or credit during the real estate contract period. Dont buy a new couch for your house, dont buy a new car for the garage, and dont hire a landscaper to renovate the back yard until your contract period is over!
This might not sound too serious, but it is. If you start spending your cash or credit during your contract period, youre jeopardizing your entire home purchase! Do NOT buy anything you dont HAVE to. This simple but vital precaution can prevent the risk of disqualification from the home mortgage loan for which you have already been approved.
Mortgage approval is the green light that empowers nearly all homebuyers in Houston to finance their home purchases. Very few homebuyers can afford a house in Houston without a lenders approval. This essential step within the home-buying process relies heavily on the buyer’s financial stability. Banks and other lenders carefully evaluate factors such as credit scores, debt-to-income ratios, and overall financial liquidity to determine whether or not you will get a loan.
Essentially, lenders want to know that if something goes wrong with your house, you can afford to fix it and maintain your mortgage lenders investment. If you start spending cash or credit after youve been approved for the loan but before the purchase is complete, you change the lenders math and could disqualify yourself!
The contract period, which lasts from signing the purchase agreement to closing the deal, is a critical time in the real estate transaction. Any changes to your financial situation during this phase can adversely affect your mortgage approval.
By making cash or credit purchases during the contract period, homebuyers risk:
To secure a successful home purchase, Angel Fultz Realty recommends the following prudent measures:
Navigating the complex Houston real estate market requires not only expertise but also a calm and steady demeanor that will not be rattled by any hiccups. Angel Fultz Realty is here to guide you through every step of the process, with tailored advice and solutions for your unique needs. Our commitment is to help you succeed in achieving your homeownership goals.
Embarking on your home-buying journey? Trust Angel Fultz Realty for expert guidance and support.Contact us today to discuss your vision of the perfect Houston home.
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