When choosing the right home, there are many factors that are equally important in the decision-making process. And the whole thing can seem overwhelming at first! As you start thinking about the many factors before buying a mobile home, you may forget about the things you should avoid doing before buying a mobile home. We came up with a shortlist of some top things you might want to avoid doing before buying a mobile home.
As always, please leave your feedback in the comments below! What lessons did you learn before buying a house? What did you learn to avoid doing before buying your next home? We look forward to hearing from you.
Now, let’s get into the top things to avoid before buying a mobile home.
Don't Miss Loan Payments
We understand life happens and sometimes you forget to pay the bills on time. We are human too. If this can be avoided, you want to set yourself up for success and make sure you are paying all your bills on time and that you don’t miss any loan payments. Missing loan payments does not reflect highly on your credit score, and it’s not setting yourself up for success when it comes to a future home loan.
The bank is going to see that you missed a loan payment which will have a negative impact on your credit score, as well as your overall credit history. Banking institutions are worse than your ex-boyfriend and will hold onto that missed loan payment(s) for over 7-years before it "falls off" your credit score. Seven years? Um, nobody has time for that! Set yourself up for success and set your loan payments to auto-pay so you don’t ever have to worry about missing a payment, again.
Now, we understand not everyone trusts the banking system and some people don't like the idea of having payments set to auto-pay. If you don’t like having payments automatically deducted from your bank account, be smart and set a reminder on your phone a week or so before the bill is due. With a week reminder, that should allow the payment to process before the bill is due, or considered late. However, check with your banking institution to see how long it takes for money to be deposited to be sure a week is enough time. You may need more time for the money to process your loan payment.
Avoid Changing Jobs
Avoid changing jobs is a big one because some times things happen where you need to take a new job position with a pay raise, to be able to afford a new home. You don’t want to turn down an opportunity that might not come around again, right? This is where having a financial gameplan is important because let’s face it, life can be very unpredictable.
You want to avoid changing jobs right before buying a new home because financial institutions who will be providing you with a home loan are going to look at how long you’ve lived in-state, what your job history looks like from the last two years, and of course what your financial status is in terms of income and credit. As you know, they are going to look into your credit and your credit history when you are applying for any type of loan. They want to see how you have managed borrowed money over the years as well as your debt-to-income ratio. Institutions will also look at your current income as well as your employment history.
If you know that you are going to need a new home within the next 3 months because let’s say your lease is up on your apartment, you might want to hold off on changing jobs. It takes, on average, 30-45 days for your credit report to update. So if you needed to move in the next 3 months, that wouldn't give you more than a couple of months to raise your credit score and have it reflect on your credit report for when the financial institution pulls your credit history.
You want your credit score to be the best it can be so you snag the best loan! If you have more time to work on your credit, let's say 6 months before you apply for a home loan, the better the loan will be because your credit score will be better, and your credit history will show improvement over time. If you are planning to move in a year or more than you should consider changing jobs if it means a raise and future growth within the company towards your career. Financial institutions are going to look into your financial past, and so if your past credit history looks good, then changing a job within a year is not as much of a factor.
If you can continue working at your current employer until you lock-down a new home, then you can really put your focus on getting a new job without worrying about all the stresses(but also many joys) that come with looking for a home.
Don't Start Banking at a New Institution
Most people have the same bank account for the majority of their adult life. If you’ve been a member of your bank for as long as you can remember and you trust them with your money, then why would you go anywhere else? Having a bank account at a financial institution for an extended period is great for when you are applying for a home loan.
Because you’ve been a member at that banking institution for X number of years, they will be more likely to work with you on home loan options and getting you a better rate when you apply for a home loan. If you join a new bank a month before you plan on purchasing a new mobile home, then that bank might not be able to work with you to give you the best home loan since you have not been a member of the institution for very long. You haven’t had time to build up that banking relationship and financial trust with that new financial institution.
Having a good, long-standing relationship with your bank can be a bonus when applying for a home loan so don’t start banking at a new institution if you are looking to move in the near future.
Don't Let Your Emotions Take Over
Now, I am certainly not the one to talk about emotions because empathy runs deep through my veins. However, it’s important to note that when you are planning to buy a mobile home, or a tiny house, or an Ultimate home, try to keep your emotions in check the best you can. The home buying process can be a rollercoaster at times.
It’s totally OK to get excited about a new home and the success of finding something perfect for you and your family! Sharing that success with family and friends is one of the best parts of owning your own home. But just know that buying a new home is a whole lotta process and there are going to be exciting parts of the home buying journey and the not-so-exciting parts of the home buying journey as well.
You may get frustrated trying to find land for your new home or trying to find a mobile home park to live in or trying to find a mobile home to fit all your needs. But that’s why working with people who are connected in the industry and who’ve been selling mobile homes for years is the key to success. You need to find a mobile home dealer that you can trust and who will listen to your housing needs, and find you that perfect new home to fit your budget.
We hope that your journey to find a new mobile home can start with us here at Legacy Housing! We sell our furniture-friendly, mobile homes and tiny houses to over 100+ dealers in America. Many of these mobile home dealerships are local, family-owned businesses providing an affordable housing option right in your very home-town.
To find a Legacy Housing dealer near you, click here!
Happy Mobile Home Shopping!