Once you’ve signed up for any home-buying assistance service, there are a few things to keep in mind. First, while getting excited about moving in and decorating your new home, be careful when making any significant purchases. Here are some things you may not realize you need to avoid after receiving financial assistance to buy a home.
- Do not deposit large amounts of cash
The financial aid side will need to know where your cash comes from, and it is not easy to trace the source of the money. Therefore, before you deposit any cash into your account, you should discuss with financial aid the proper way to record your transactions.
- Don’t make any big purchases
It’s not just home-related purchases that can disqualify you from your assistance. Any large purchases could 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). Since this higher ratio makes the grants riskier, you may no longer qualify for their contributions. So be very careful when making large purchases, even furniture or home appliances.
- Do not co-sign for financial support with anyone
When you co-sign a financial aid with someone, you are responsible for that support and must repay it. With that obligation, the debt-to-income ratio is also higher. Even if you promise that you won’t be the one to make the payments, financial aid will have to count the costs on you.
- Don’t switch bank accounts
The financial aid side needs to source and track your assets. That task is much easier when there is consistency across your accounts. Then, before you transfer any money, notify your support staff.
- Do not apply for new credit
It doesn’t matter if it’s a new credit card or car. Your credit report issued by institutions in multiple financial channels (mortgage, credit card, auto, et cetera.) will impact your credit score. For example, a lower credit score can affect your mortgage interest rate, even though you may be eligible for approval.
- Do not close any accounts
Many buyers believe that having less credit makes them less risky and more likely to be approved. That is not correct. A key component 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 harms both of those aspects of your score.
- Consult an expert
In short, notify your support team in advance of any changes. Disparities in income, assets or credit should be reviewed and implemented to ensure your homebuyer can still be approved. If your job or employment status has recently changed, share that with support. Ultimately, it’s best to fully disclose and discuss your intentions with the employee before you do anything financially.
You want your home sale to go as smoothly as possible. But, before you make any significant purchases, move money, or make any major life changes, be sure to consult someone qualified to explain how your financial decisions can affect your homebuyer assistance. For detailed advice, sign up here and contact us at (+84) 948 230 033 or email: firstname.lastname@example.org. The Homebase team will get back to you and provide more details as soon as possible.