If you are thinking about buying Butte real estate in the near future, there are three activities you should avoid. These are normal things we all do from time to time, but are unwise when contemplating a new mortgage application.

Change careers: This is different than just changing jobs. If you have recently gotten a new job in the same field, at the same or better pay, and your past history shows long, solid employment, all should be fine. Changing careers entirely is more of an issue. You have no history of steady employment and income in the new field. Since you’re new to the field, you may be bringing in less income than in your previous career. That’s why a recent career change makes your mortgage application less appealing to a loan officer.

Open new bank accounts: When you apply for a loan for Butte real estate you need to provide bank statements for several months. Although your money is still in your possession, moving it to new bank accounts generates a series of big withdrawals and deposits which gives an image of instability. If you have withdrawn large amounts of money and not re-deposited it, that looks even worse. Even if you invested the money in something solid, you no longer have the cash and thus appear less solvent.

Buy Big Ticket Items: The reason for this is simple. When reviewing a loan application for Butte real estate one of the biggest things a lender takes into consideration is your debt-to-income ratio. Purchasing expensive items on credit can negatively impact your debt-to-income ratio. Wait until after you’ve closed on your home to buy new furniture or appliances.

Thinking of buying a home? I can help you get financing and buy the home of your dreams. Give me a call today at (406)491-1234 or email me at Blog@judykivela.com

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