3 Things Not to Do If You Want to Buy a House in the Next 6 Months

Buying a house is a dream for many. It's like a rite of passage to adulthood, a testament to one's hard work. But, let's face it, the road to purchasing your dream home is littered with potential pitfalls. Especially if you're planning to buy within the next six months, there are certain things you absolutely must not do when in the process of getting a mortgage. These actions can derail your home-buying journey before it even begins.

1. Take on new debt

Imagine this: You're just a few months away from buying a house and you see a car you love. It's shiny, it's new, and it's calling your name. But wait! Taking on new debt, like a car loan, is akin to walking on thin ice.

Why? Well, mortgage lenders scrutinize your debt-to-income (DTI) ratio when considering your mortgage application. This ratio compares your total monthly debt payments to your monthly income. Buying that car increases your DTI, making lenders nervous. They might think, "If they're struggling to pay their current debts, how will they handle a mortgage?"

And there's more. New debts often come with hard inquiries on your credit report. These can ding your credit score, even if it's just a little. Every point counts when you're aiming to be eligible for the best mortgage rates.

What to do instead:

• Focus on paying down existing debt. It's like cleaning your room before buying new furniture. Make space for the new, but first tidy up the old.
• Check your credit report. Make sure there are no errors pulling your score down.

2. Change jobs

Consider this scenario. You've been in your current job for a while. It's steady, but suddenly a new, exciting opportunity pops up. Should you take it? Here's the thing: Lenders love stability. Your current job is like a cozy, well-known café where everyone knows your order. A new job? That's an unexplored, fancy restaurant. Might be great, might not.

Lenders look at your employment history as a sign of financial stability. A recent job change, especially to a completely different field or a lower-paying role, can be a red flag. It screams "risk" to lenders.

What to do instead:

• Stay put, if possible. If your current job is stable and pays well, it might be wise to stick around until you've sealed the deal on your house.
• Communicate with your lender if a job change is unavoidable. Sometimes, life happens. If you must switch jobs, talk to your lender about how this might impact your mortgage application.

3. Ignore your savings

So, you've got a decent income. You're paying your bills and living comfortably. Saving money? That can wait, right? Wrong. Every penny counts when you're buying a home. Ignoring your savings is like ignoring a leaky faucet -- small at first, but potentially disastrous in the long run. You'll need money for a down payment, closing costs, moving expenses, and a host of other unforeseen expenses. Skimping on savings today can mean a world of stress tomorrow.

What to do instead:

• Automate your savings. Set up a direct transfer to your savings account each payday. It's like putting on a seatbelt -- do it automatically for safety.
• Cut back on non-essential expenses. Maybe cook at home instead of dining out. Small changes can lead to big savings.

Buying a house in the next six months is an exciting goal, but it requires careful planning and discipline. Avoid taking on new debt, changing jobs impulsively, and neglecting your savings. These steps will help ensure that your dream of homeownership doesn't turn into a financial nightmare. And be sure to know everything about securing a mortgage so you can be the most prepared. Remember, it's the small decisions you make today that will pave the way for your big purchase tomorrow.