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Five Things to Avoid When Purchasing a Home

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There are four major things to avoid doing before applying for a loan and during the loan process itself. Any one of these four things can greatly impact your ability for a mortgage loan, so it is critical to avoid doing any of the following until after your loan has closed:

Do Not Change Jobs
Changing jobs before or during the loan process can create a real problem in qualifying you for a loan, particularly if that job is in a different line of work or at a lower rate of pay. During the loan process, it can also create time delays as the new job will need to be verified and you will need to provide a copy of your first check stub.

Do Not Switch Banks or Move Your Money
It is best to leave your money right where it is until your loan is closed.
Moving your money to a new bank or even into a new account can wreak havoc with the verification process.

Do Not Pay Off Bills
Your loan originator will advise you if it is necessary to pay off bills to help you qualify for a loan. They will also show you the best way to pay off bills to make sure you have the evidence you need to prove that the bill has been paid in full.

Do Not Apply for New Credit Cards
Because you are about to sign-off on a new credit obligation (your new home loan), you may be tempted to apply for a new credit card offering a wonderful balance transfer option. Or you may be tempted to apply for a store card so that you can take advantage of a six-month, same-as-cash offer on window treatments you love for your new home. Say "No" to all of these offers until after your home is purchased. Extending your credit may have a negative impact on your ability to finance your home. It could even push you into a higher interest rate.

Do Not Make Any Major Purchases
Many borrowers make the mistake of buying a new car, some furniture, or making another major purchase without realizing the impact it can have on their ability to buy a home. A large payment can affect the amount of home you qualify for and, during the loan processing itself, can actually make it extremely difficult to get your loan approved.

If you must do any of the things listed above (even if you've just been pre-qualified for a loan) contact your loan originator. They can help by re-qualifying you if necessary and advise you or your options. By avoiding these four things, you can look forward to a successful loan closing.