02/24/2024
Real talk here! If you’re planning on buying a home in 2024, keep these 3 things in mind that could likely ruin your chances of buying a home:
1️⃣Co-signing for someone elses debt-
••If you co-sign for a loan it will show up on your credit report and affect your DTI*. This reduces the amount you can qualify for ••
2️⃣Having too much credit card debt-••while it’s good to have a mix of credit types on your report. And having at least two cards with very low utilization is ideal. BUT..if you are too close to the credit limit your credit scores will decrease rapidly. Even if you pay your bills on time - carrying maxed out credit cards likely means higher monthly payments and will impact your DTI* as well••
3️⃣ Switching from W2 (hourly or salary) employment to a commission-only, base + commission, 1099, or other self employment.
••Changing jobs within the same field so long as your pay stays the same or increases is allowed. Underwriters want to see a 2 year consistent history of employment with minimal changes. But if you completely change the way you get paid, the clock resets and you risk having to wait up to two years before you can actually qualify for a home loan••
*DTI - Debt to Income ratio (how much you pay out monthly to what you earn)
