Once you’ve signed up for a home buying help, there are a few things to keep in mind. First, be careful when making major purchases as you get excited about moving in and furnishing your new home. Here are some things you may not realize you need to avoid after getting financial help to buy a home.
- Do not deposit large amounts of cash
The financial aid side needs to know where your money is coming from and it is not easy to find out the source of the money. Therefore, before depositing cash into your account, you should discuss with financial aid how to properly record your transactions.
- Don’t make big purchases
It’s not just home-related purchases that can disqualify you from your help. Any major purchase can be a sign of financial support. New debtors have a higher debt-to-income ratio (the amount of debt you have relative to your monthly income). Because this higher ratio makes the grants more risky, you may no longer qualify for their contributions. So be very careful when making large purchases, even furniture or home appliances.
- Don’t sign up with anyone for financial support
When you sign a financial support with someone, you are responsible for that support yourself and must repay it. With that obligation, the debt-to-income ratio is also higher. Even if you promise that you will not be the one making the payments, financial aid will have to bear the cost.
- Do not switch bank account
The financial aid side needs to find and track your assets. That task is much easier if there is consistency between your accounts. Then, before transferring money, notify your support staff.
- Do not request new credit
It doesn’t matter if it’s a new credit card or car. Your credit report issued by institutions across multiple financial channels (mortgage, credit card, auto, etc.) affects your credit score. For example, a lower credit score can affect your mortgage interest rate, even though you may be eligible for approval.
- Don’t close accounts
Many buyers believe that having less credit makes them less risky and more likely to be approved. That is not correct. An important part of your score is the length and depth of your credit history (as opposed to your payment history) and your total credit utilization as a percentage of available credit. Closing your account hurts both aspects of your score.
- Consult an expert
Basically, notify your support team in advance of any changes. Differences in income, wealth, or credit must be reviewed and implemented to ensure that your home buyer can still be approved. If your job or work status has recently changed, please share with support. Ultimately, it is best to fully disclose your intentions and discuss them with the employee before doing anything financially.
You want the sale of your home to go as smoothly as possible. But before you make major purchases, move money, or make major life changes, consult someone qualified to explain how your financial decisions can affect your home buyer’s assistance. Sign up for detailed advice here and contact us at (+84) 948 230 033 or email: customer@gethomebase.com. The Homebase team will contact you as soon as possible and provide more details.
