If you need to take out a mortgage loan as an Orange County homebuyer this summer, allow us to fill you in on what you should and shouldn’t do, starting now, and leading all the way up to closing on an Orange County home. As your OC real estate team, we want to ensure that you don’t make any common rookie mistakes during your first home purchase!

Here are some tips to keep in mind:

  • Check your credit. Don’t begin the home-buying process until you check your credit. You can pull it for free from each of the three major credit agencies once a year without penalty. Check your report for any errors, and if your credit score is lower than you’d like, work on improving that first.
  • Don’t take on new debt. Even after you receive a pre-approval, your mortgage lender could change his mind any time before you officially close on a home! Therefore, now is not the time to open any new lines of credit, nor is it the time to buy a new car, new furniture, plan a vacation, etc.
  • Don’t make large deposits, either. Your mortgage lender will be tracking your money, so if you deposit a large sum now, it could create some issues in your loan acceptance timeline. Lenders want to see that the money you’re putting towards a home is yours, with some exceptions.
  • Stay in your job. Switching jobs in the middle of the home-buying process is a big no-no. Ask your prospective employer if you can start after your closing date. This is even true if your new job has a higher salary, as it brings up the question of stability.
  • Get pre-approved! Don’t even begin house hunting until you’ve been pre-approved by a mortgage lender. This way, you’ll know exactly what you can afford, so you can save yourself a few heartaches. Also, sellers will take you way more seriously, knowing you can afford their home.
  • Plan for all of the costs. Your down payment and monthly mortgage payment aren’t the only costs of buying and owning a home. Consider closing costs now, and homeowners insurance, property taxes and possible HOA fees regularly, along with repairs and maintenance costs. Factor these in when determining what you can afford!

As your Orange County real estate team, we hope these mortgage tips come in handy. If you need some local mortgage company recommendations, we’d be happy to give you some! If you have any questions about the home-buying process, or you’re ready to begin your home search in the Orange County real estate market, contact us. We’d love to help you find the home of your dreams!