Things To Avoid Before Buying A Home
There are four major things to avoid before applying for a mortgage loan and during the loan process itself. Any one of these thing could impact your ability to qualify for a mortgage loan, so it's critical to avoid any of them 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 the new job is in a different line of work or at a lower pay rate. Changing jobs during the loan process can also create time delays while new employment is verified.
- DO NOT SWITCH BANKS OR MOVE YOUR MONEY AROUND: it is best to leave your money right where it is until your loan closes. Moving your money to a new bank or even into a new account could create problems with the verification process.
- DO NOT PAY OFF BILLS: your loan officer should be able to advise you of your qualification status and advise you of the value of paying off bills in order to qualify for a larger loan.
- DO NOT MAKE ANY MAJOR PURCHASES: many borrowers make the mistake of buying a new car, furniture, or other major purchase without realizing the impact it can have on their ability to buy a home. A large monthly payment can affect the amount of home you qualify for, as well jeopardize the loan approval process.