You’ve done it! You have taken the first steps in buying your home and have gotten prequalified by a trusted mortgage professional. You have gone out and started looking at homes online and maybe even toured a few you were interested in. Maybe you even have an offer that has gotten accepted and are now working toward CLOSING on your home!!!

All of these are reasons to celebrate. You have done the work and are approaching a huge milestone.

*If any of these are on the horizon, make sure you discuss with your real estate agent AND your mortgage professional to see how/if they affect you.

1. Job Change – There are times when opportunities come up and you may want to jump because the timing seems to work out. You are about to buy a house AND get a better job? JACKPOT!

BUT

• If the job is in a different profession/field/career than what you are currently doing, this can affect your pre-qualification.
• Lending institutions typically look at 2 years of income as a basic requirement for their loans.
• Even if the new job pays you MORE, this could negatively affect your loan

2. Open New Credit – you want to buy new furniture, gym equipment, kitchen appliances or a car for your new home and new life. And there is low/zero % financing program? SIGN ME UP!

BUT

• Opening new accounts can impact your credit score which can impact your rate.
• New accounts can even affect the type of loan program you qualify for.
• New accounts opened during the process of buying a home can look like a red flag for lenders

3. Closing Old Credit Accounts

• • Similar to the example above this can have all the same effects as opening new credit.

4. Receiving out of the ordinary large deposits

• • Remember that when lending institutions look at your financial picture and approve you for your loan, they approve you based on the picture they have at the time. If you change the picture during the process, that could be a red flag.
  • Also remember that “gift money” can be accepted for different loan programs but the amount and maturity (time in your account) can vary depending on the program.

These are the major moves to AVOID. If you feel like you might make any of these mistakes,

TALK TO YOUR LENDER FIRST.

Don’t end up a real estate meme. You’re better than that. Especially now that you have read this!

Have more questions? Reach out and let’s chat!

Did you read the title? Then you might assume that my answer as a real estate professional will always be BUY, BUY, BUY. And you would almost be right. Why almost? Keep reading!

The reason why my answer may not always be BUY has everything to do with what is right for you and those who rely on you. Will buying a home put you in a difficult financial position unnecessarily? Are there specific circumstances that would prevent you from being able to commit to buying a home? Let’s take a look at some of the reasons why it might be better for you to rent for now.

1. Uncertainty with regard to future income – are you looking at changing careers soon which may negatively impact your income? Are you going to take an initial step back to switch careers? Is your company going through expected down-sizing and you are unsure about your status?

• If you answered “YES” to any of these then it might be right to pause your home buying process. The money you have in reserves (savings/investments) may be more important as a safety net than in a home.
• A “YES” to any of these questions is usually a TEMPORARY situation. Keep reading to see why BUYING when you have clarity on your situation is important. HINT: it’s all about your long-term financial health and wealth.

2. Expected Life Change – will you be moving away from the area you would like to buy in soon? Will you be getting married? Are you expecting an addition to your family imminently?

• Let’s tackle the first situation – if you know you will be moving away in less time than a full rental lease period, then it may not make sense to purchase a home. Keep in mind that if you have to SELL a property there are costs that may affect your equity gains. The caveat: if you want to be able to purchase a home and then convert the property into an investment, then the answer may still be to BUY.
• You are getting married (congratulations!) – you are planning your wedding and currently rent (with or without your significant other). If the stress from the wedding is consuming your life and you don’t feel like you can tackle another major life event, its OK! The financial and emotional rigors of wedding planning can take a toll on individuals and on the relationship itself (by the way… I do know one of THE BEST wedding and event planners in the Greater Seattle Area). We can still chat and plan to plan after your special day =)
• You are expecting and addition to your family CONGRATULATIONS! – I am an unapologetically proud girl-dad and find joy in welcoming any new addition to the lives of those around me. If you are currently in a place that can accommodate you AND your little one/s, then go ahead! Rent for now! This also brings along potential financial adjustments and you may want to assess those before jumping in to your home.

3. Your current living situation is ideal AND financially beneficial
   • Are you living at a family member’s rental unit with well below-market rent? You have your own space and have no upcoming life changes that would change the agreement. Then by all means keep renting!

BUT…

Now we look at why it would still be beneficial to BUY even when it means some sacrifices in life style.

1. You start building equity – The Greater Seattle housing market has appreciated an average of 9% every year over the past XXXX years. This means that the sooner you purchase your home, the sooner you get to start building that equity.
2. This also means that the longer you wait there is a likelihood that the same home will cost you more.

• That $600,000 house could cost $654,000 next year.
• Every $10,000 in price is about $60/month in mortgage payments
• You are paying somebody else’s mortgage instead of your own. – Yes, this is obvious but should not be left assumed. Now it’s stated.
• You are missing out on tax deductions – have you talked to a CPA recently? If you are a well earning person and have zero or minimal deductions, they have probably already recommended that you purchase a home so you can at least gain some deductions on your income while also controlling an appreciating asset.

You really CAN BUY but just need someone to help you – ENTER Charles Dizon!

• • Yes this is tongue-in-cheek but it does not make it any less true.
  • If all you need is someone to manage the process and find you your home, I can do that while taking as much stress away from the process as possible.

I want whatever is best for YOU. If you have read through this and none of the examples I have shared speak to you, then maybe it’s TIME TO REACH OUT. At worst we will have a great conversation. At best we get you started towards building your financial future.

Like what you read? Reply to this and tell me what you think.  Did I miss any more examples? Tell me more!