Just a couple weeks ago, we detailed some of the most common home buying myths associated with today's marketplace, and after such a positive reception, we thought we'd offer our readers a new mini series that clues home buyers in on some of the best kept secrets you should follow during the home buying process.
It goes without saying that purchasing a new home is a pretty major investment, and if you're like the majority of home buyers who need to finance a new home or condo in Chicago, its vital your credit score is as high as possible. After the housing and financial crash of 2008, lenders need to see that you're a reliable borrower, and being able to provide a detailed paper trail that proves you're worth the risk is perhaps the most important step in securing that much-needed home loan.
With this in mind, it's always the best policy to avoid making any large purchases 3-6 months prior to applying for any sort of home loan or mortgage assistance. Any slight decline in your credit score right before applying for a loan can have a dramatic affect on how much you might be approved for, or whether you'll even be approved at all. Opening new credit cards, increasing your debt, or buying a number of big ticket items will almost always impact your credit score, and if you're currently in the market for a new place to live, that impact, no matter how slight it may be, can sometimes keep you from the ultimate goal of home ownership.