Tacoma Real Estate: Top 3 things NOT to do when preparing to Buy a Home in Tacoma
We’ve figured out all the things that you definitely shouldn’t do when you are beginning to prepare to buy a home in Tacoma.
Here are some recommendations for things that might be surprising!
Don’t close out credit card accounts
This is incredibly important. Also, this will depend heavily on the duration the account has been opened. For example, if you close the account that you’ve had open the longest, that will have a higher impact on your credit score. Never close an account unless you talk with a professional who can see how that will impact your score.
Don’t wait to save 20%
I see this all too often, I have a client who decides they want to wait until they can put 20% down to avoid private mortgage insurance. While they spent the last 1-2 years saving, the values appreciated by more than 20% within those 2 years and interest rates went up. Appreciation varies by area but it’s important to consider the rate of appreciation in your area when thinking about taking time to save. For my clients in Pierce County, taking time to save didn’t make sense when considering value appreciation and interest rate increases.
Don’t take unpaid time off
This could dramatically decrease your approval amount. My clients often tell me they didn’t know this would have an impact but we can’t consider your 40 hour a week income, if you’re not showing you consistently work that. If you want to get the highest approval, work all your hours consistently.
