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Most new homeowners are quite careful about their spending and credit in the months and years leading up to a home purchase. Homeowners budget and save, and avoid making unnecessary credit inquiries in order to qualify for a home loan. What many people don’t realize is that qualification doesn’t equal a successful closing. When you’re buying a new home, make sure you preserve your financial status all the way through closing to make sure you don’t compromise your loan.  

One of the big things lenders look at when they’re deciding whether to approve a home mortgage is your qualifying income. Your income has to be high enough to cover all of your financial responsibilities; most lenders look for a ratio based on percentages of your total income. If the mortgage for the home you want to buy would be too high based on your income, you might not be able to qualify for the mortgage. One way to boost your borrowing power is to lift your qualifying income.

Buying a fixer-upper can be a great investment, both in terms of buying one to live in and buying one for investment purposes to use as a rental property. Unfortunately, many novices assume that anything with “fixer-upper” in the description is a great choice, but realistically, that isn’t true. A fixer-upper property is only a good choice if it’s priced right, and the flaws aren’t too drastic.  

Timeshare condos may look like an attractive way to enjoy a week on the beach somewhere without the commitment of buying another property. The cost of a timeshare is only a fraction of what your mortgage payments would be on buying a property outright, and you can enjoy your time hassle-free every year. What looks like an attractive investment isn’t, though. Timeshares are a poor investment, and if you’re considering a timeshare, you’ll probably benefit more from another type of real estate investment.

It’s commonly accepted that buying a home is a good investment. Homes tend to appreciate in value, sometimes at a rate that other low-risk investments can’t match. You also build equity when you buy a home; equity that can provide great benefits when you sell your home or tap into your equity through loans and lines of credit. Buying a home is a long-term investment, but if you want a good low-risk, long-term investment, then buying a home is a great choice.  

After you buy your home, it’s time to focus on rebuilding your emergency financial reserve for any of the unexpected problems that plague new homeowners. Owning a home comes with a host of potential problems, and smart homeowners have an emergency savings account to help deal with those problems. Your emergency reserve can also help sustain you in the event of a job loss or other unforeseen circumstance. 

You’ll get a long list of solicitations after you purchase a home. When you buy a home, your name and address goes on public record as being a new homeowner, and you’ll start receiving a slew of home-and-mortgage-related solicitations. Beware of solicitations for mortgage insurance, as most offers are trying to sell you something you already have.

When you do buy a home, the purchase becomes a matter of public record. Some communities publish home sales, complete with buyer and seller last names and a purchase price, in the local newspaper. All communities make home sales public at the local registry of deeds. Because your name and address become public record, your status as a new homeowner is up for grabs for everyone who wants to sell you something.  

When you sign your mortgage paperwork, your lender may give you information about electronic mortgage payments. Some people love making payments electronically, while others avoid it because of the risk of overdrafting an account if the cash isn’t there. If your lender offers electronic mortgage payments, you should seriously consider signing up, even if you traditionally avoid making electronic payments.  

What constitutes a jumbo mortgage loan?  Jumbo mortgages are loan amounts higher than the allowable loan limits by Fannie Mae (FNMA) and Freddie Mac (FHLMC).  Because of the higher loan limits, jumbo mortgages carry slightly higher rates.  Jumbo loan limits can change annually depending on home values.