Once you’ve applied for a mortgage to buy a home, there are some key things to keep in mind. While it’s exciting to start thinking about moving in and decorating, be careful when it comes to making any big purchases. Here are a few things you may not realize you need to avoid after applying for your home loan.
Don’t Deposit Large Sums of Cash
Lenders need to source your money, and cash isn’t easily traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer.
Don’t Make Any Large Purchases
It’s not just home-related purchases that could disqualify you from your loan. Any large purchases can be red flags for lenders. People with new debt have higher debt-to-income ratios (how much debt you have compared to your monthly income). Since higher ratios make for riskier loans, borrowers may no longer qualify for their mortgage. Resist the temptation to make any large purchases, even for furniture or appliances.
Don’t Co-Sign Loans for Anyone
When you co-sign for a loan, you’re making yourself accountable for that loan’s success and repayment. With that obligation comes higher debt-to-income ratios as well. Even if you promise you won’t be the one making the payments, your lender will have to count the payments against you.
Don’t Switch Bank Accounts
Lenders need to source and track your assets. That task is much easier when there’s consistency among your accounts. Before you transfer any money, speak with your loan officer.
Don’t Apply for New Credit
It doesn’t matter whether it’s a new credit card or a new car. When you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), it will have an impact on your FICO® score. Lower credit scores can determine your mortgage interest rate and possibly even your eligibility for approval.
Don’t Close Any Accounts
Many buyers believe having less available credit makes them less risky and more likely to be approved. This isn’t true. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both of those aspects of your score.
In Short, Consult an Expert
To sum it up, be upfront about any changes when talking with your lender. Blips in income, assets, or credit should be reviewed and executed in a way that ensures your home loan can still be approved. If your job or employment status has changed recently, share that with your lender as well. Ultimately, it’s best to fully disclose and discuss your intentions with your loan officer before you do anything financial in nature.
You want your home purchase to go as smoothly as possible. Remember, before you make any large purchases, move your money around, or make any major life changes, be sure to consult your lender – someone who’s qualified to explain how your financial decisions may impact your home loan.
As the real estate market changes, it’s important to have a running start on your home buying journey.
Here are three things to keep in mind — from mortgage rates to buying power — as you navigate the housing market.
What’s going on with mortgage rates?
As consumers, we have been spoiled with historically low interest rates that held out for an uncommonly long time. As interest rates begin to fluctuate, it is common to feel concern, especially for first-time home buyers.
Understanding the cause and effect behind rate increases can help reduce worry over market changes. Interest rates directly influence a buyer’s buying power. Real estate agents can help you understand what this means and what steps you can take to better prepare for it.
I often advise clients to check with the financing institution with whom they have a working relationship. This institution will already have your financial history and a personal gain in maintaining your business. They are best equipped to help you understand your buying power.
Know your buying power
Increased interest rates will increase mortgage payments, and this ultimately influences how much buying power you have. Knowing your buying power is an important factor when it comes to entering the housing market.
It is especially important to understand what you can afford monthly (in terms of payments) and how much of a down payment you need to get the monthly payments where you need them. Many people would rather look for lower costs vs. having to produce more of a down payment, but it is always good to have options.
Don’t be afraid to shop lenders
I have a working relationship with several lenders, and I encourage my clients to shop around for the best rate when going through the pre-approval process. A home is one of the largest purchases you will ever make, and even though refinancing is an option later down the road, you should feel confident in your purchase and the process of paying it off for the foreseeable future. Plus, it is always in the buyer’s favor to come to the market prepared.
When selling your home, there are a number of tasks to take care of in order to ensure that your home is enticing to potential buyers.
If you happen to have a pool in your backyard, it is important to pay special attention to it as well. The pool is a part of your home – it is a selling point. Thus, it is crucial that you take care of it before selling.
Here is a quick and easy Summer pool checklist to look over and make sure that your pool will support your home-selling process!
Amazing things are happening at Celina ISD – known as the destination district.
Boasting an A rating, this school district holds a promise of growth and excellence in student education. Celina ISD is located 40 miles north of Dallas and it is currently one of the fastest growing public school districts in Texas. And it’s easy to see why.
The district has an enrollment of over 2, 500 students and currently has one high school, one junior high school, two elementary schools and one early childhood school.
Here are a few things I want you to know about the district:
According to this list of the best school districts in the Dallas area, Celina comes in at the top 20 for its high STARR, AP/IB, SAT and ACT scores.
Academic excellence is certainly a contributing factor in Celina ISD’s high rating. In 2020, the high school received the College Success Award; this is coupled with the high percentage (99%) of high school students who graduated early or on time in 2019.
With the pandemic, current numbers are slow coming as many requirements were previously put on hold.
There’s no doubt that academic excellence goes hand in hand with extracurricular activities. According to the Celina ISD website, “Our district has a long-standing reputation of providing quality education that gives our students hope for tomorrow by helping them reach their potential through innovative programs and experiences.”
Celina ISD offers a fine arts program and a robust athletic program, attracting students around the area.
Summer athletic camps keep students engaged with baseball, basketball, football, softball and volleyball camps.
Greatschools.org is based on parent reviews and a high percentage of Celina ISD schools average a nearly perfect score. The average years of teacher experience is 12.7 years, and this shows in many of the well-rated parent reviews.
Celina ISD does accept transfer applications within the district.
Celina is truly a city on the rise.
Did you know that when it’s fully built out, Celina will have 350,000 residents. That’s pretty incredible to think about when you consider it has around 37,000 today.
I love all of the new developments coming to Celina, the Square downtown and the quality of their school system.
Celina has been ranked the #1 fastest growing city in North Texas for three years in a row by the Dallas Business Journal. This ranking really comes as no surprise when you learn about all of the great things they have going on.
Learn about Celina’s welcoming atmosphere and thriving economy from my friends at Check Out DFW:
Celina has a population of 37,000 (and is steadily growing). Most residents are young families, with the median age being around 36. Celina’s median household income is $98,277, with an average home value of $465,000.
Economic development is a strong focus in the community. The majority of residents are community-minded and committed to shopping locally while supporting their neighbors. With this healthy cultivation of growth, the town is shaping out to become an ideal place for small-town businesses to thrive.
Situated along the coveted Collin County Corridor, Celina’s maximum projected buildout population is approximately 350,000.
A Gigabit City
Gigabit cities are places that offer ultra-high-speed broadband that is available citywide at speeds of 1 gigabit per second (1 Gbps) or faster. This makes it easier for residents to access the Internet and allows businesses and schools to thrive and expand.
Celina received its official designation as a Gigabit City from the Office of Governor Greg Abott in 2020.
Despite the projections of growth and amazing accessibility to technology, Celina is committed to its roots and maintaining a strong community spirit. The town regularly hosts community events, including its series of annual events to keep up the fun and outreach building.
These annual events include Friday Night Farmer’s Markets, Movies on The Square, Parkfest, CajunFest, their 4th of July Celebration, Trick-or-Treat on the Square, and Christmas on The Square. You can read more about these events on the city’s economic development Facebook page.
Celina School district
For several years in a row, the two school districts serving Celina students — the Celina and Prosper Independent School Districts — have received A ratings from the Texas Education Agency.
Between these two independent school districts there are six elementary schools: Boyer, Bryant, O’Dell, Johnson, Light Farms and Lykins. Four middle schools: Celina Junior High, Reynolds Middle, Rogers Middle, and Rushing Middle, and two high schools: Celina High and Prosper High.
They are all ideally situated within close proximity to Celina’s expanding neighborhoods. Read more about Celina ISD here.
In 1997, the City of Celina was designated as an official Main Street City by the Texas Historical Commission and the National Trust for Historic Preservation. The Square remains the heartbeat of this special place.
They say you can tell a lot about a city’s health from its downtown. Celina’s historic downtown area is thriving with opportunity and offers dining, shopping, professional services, city offices, and green space within walking distance of the town’s pavilion.
Checkout DFW has covered some of the amazing businesses along The Square which attract locals and visitors alike. Dining options include Lucy’s on The Square, Toasted Walnut Table and Market, Tender Smokehouse, and Celina Star Café. Shopping options include Willow house Boutique, Annie Jack, Grace Bridge Resale, and Hey Sugar, candy store to name a few.
There is no shortage of inspiration along the streets of Celina’s downtown Square. This is where the town’s heritage lives on and where the community gathers, works, and plays.
For more information on Celina or other cities in the Dallas Metroplex, contact Matt Braun at [email protected]