Buying a home, especially for the first time, can feel like a daunting task. There are many things you need to do before you can confidently make an offer on a home, especially in a fast-paced environment like the Silicon Valley. Once your offer has been accepted you'll likely be excitedly counting down the days until you can move in and start your life as a homeowner. So even if you've been pre-approved for a home loan avoid these financial mistakes during the home buying process. Here are the top 5 financial mistakes you'll want to keep in mind.
4. Don't consolidate debt
It may seem like a positive thing to consolidate debt and it's true that over time debt consolidation can help making it easier to make payments on time which will improve your credit score and reduce your overall debt, however, debt consolidation can have a detrimental impact on your credit score. This is because taking out a new loan and closing multiple accounts in a short period of time appears risky to credit reporting bureaus as well as a mortgage lender's underwriter, the person responsible for thoroughly analyzing your finances.