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Mistakes to avoid during the home purchase process

Home buyers may assume that they are going to be able to move into their homes soon after their offers have been accepted. However, the transaction is not official until the closing date. Therefore, it is important that buyers don't make mistakes that could result in losing a mortgage or otherwise jeopardizing their chances of getting their dream home. Ideally, those who are about to purchase a home in Illinois or anywhere else will not open a new credit card account.

They should also refrain from getting a car loan or adding any other debt to their credit report. Cosigning for a loan is generally not a good idea prior to purchasing a home. This is because it will increase a buyer's debt-to-income (DTI) ratio even if that person is not the primary borrower. Buyers who currently have debt should not refinance their loans or consolidate existing balances.

While this may make it easier to pay bills in the future, it could also alter a person's credit score. Therefore, a lender may need to run a new credit check or further scrutinize the terms of any loan offer that was made. Finally, it is critical that home buyers stay current on their existing loan balances. Missing a payment could lower a person's credit score, which may make a lender question a person's ability to repay a home loan.

Those who are thinking about buying a home may want to consult with legal professionals throughout the process of doing so. An attorney may review a purchase offer, review the terms of a home loan or take other steps to help a buyer through a real estate transaction. Legal counsel may be able to ensure that all required disclosures about a property are made before a transaction closes.

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