8 Things NOT to do when Buying a Home

DON’T BUY OR LEASE AN AUTO!

Lenders look carefully at your debt-to-income ratio. A large payment such as a car lease or purchase can greatly impact those ratios and could prevent you from qualifying for a home loan.

DON’T MOVE ASSETS FROM ONE BANK ACCOUNT TO ANOTHER!

These transfers show up as new deposits and complicate the application process. You must disclose and document the source of funds for each new account. The lender can verify each account as it currently exists. You can consolidate your accounts after your loan closes, if you need to.

DON’T CHANGE JOBS!

A new job may involve a probationary period, which must be satisfied before income from the new job can be considered for qualifying purposes.

DON’T BUY NEW FURNITURE OR MAJOR APPLIANCES FOR YOUR “NEW HOME”!

If the new purchases increase the amount of debt you are responsible for on a monthly basis, there is the possibility this may disqualify you from getting the loan, or cut down on the available funds you need to pay the closing costs.

DON’T USE YOUR CREDIT CARDS UNNECESSARILY

Only use your credit cards for normal purchases as you have done in the past. A new credit report will be ordered at the close of escrow. This could affect your approved loan if your credit ratios increase.

DON’T IGNORE WHO RUNS YOUR CREDIT REPORT!

This will show as an inquiry on your lender’s credit report. Inquiries must be explained in writing.

DON’T ATTEMPT TO CONSOLIDATE BILLS BEFORE SPEAKING WITH YOUR LENDER!

The loan officer can advise you if this needs to be done.

DON’T PACK OR SHIP INFORMATION NEEDED FOR THE LOAN APPLICATION!

Important paperwork such as W-2 forms, divorce decrees, and tax returns should not be packed with your household goods. Duplicate copies take weeks to obtain, and could stall the closing date on your transaction.

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