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10 Mistakes To Avoid Before Buying Home

If you have decided it is time to purchase a home, then you should be aware of these ten things that you really should not do before you make that purchase.  These tips will help make qualifying for that loan easier.  

1.You should not make any large deposits or withdrawals to your bank account.  The money for the down payment needs to be in your account for a period of time so that it is considered 'seasoned.'  If you are making large deposits or withdrawals, you may be asked to document each of these transactions. 

2.Your lender will request the two most recent month's statements from your bank account, so it is not a good idea to switch bank accounts shortly before you purchase a home.  Your lender will request documentation if you have switched banks. 

3. You should not switch jobs right before you purchase a house.  If you are thinking about changing jobs, you should do it at least several months before you buy a house or you may not qualify. 

4.Try not to have your credit pulled for at least 6 months prior to your home purchase, because this can bring down your score. 

5.Wait to open a new account to buy furniture for your new house until after you have closed the loan.  Opening new accounts will lower your credit score and may show up as a red flag to the lender. 

6. Never co-sign on any loan, whether it is a mortgage refinance loan or an auto loan because that loan will be counted toward your debt, which may cause you to be unable to qualify for the home loan. 

7. Don't be late paying any of your other bills.  If you are late on installment or revolving credit loans, it can show up as a hit on your credit and may affect your ability to qualify for the home loan. 

8. Don't pay your rent with anything but a check that can be verified.  Your lender may require you to show 12 months of cancelled check to verify your rental history, so don't pay in cash. 

9. Don't go out of town in the middle of the loan process.  If a question comes up and you are on vacation and can't respond, it could slow the whole process down and even cause problems that mean you won't get the house. 

10. Don't overspend, especially on trivial items.  Your lender may not approve the loan if it looks like it is taking your last penny to purchase the house, and you don't want to end up with a bad credit mortgage. 

By paying attention to this list of things not to do, you should have a smooth loan process whether you are purchasing a home or doing a mortgage refinance.