This is a list of things to steer clear of when you are seeking to obtain financing for a home. The following items may prove to be a detriment when you wish to move forward with the loan process. Do not do any of things even after approval. Before you close the bank may choose to re-look at your financial picture or verify facts on your loan application, if there are ANY changes they have the right to cancel your loan! Wait until AFTER you close...

1. 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 prevent you from qualifying for a home loan.
2. Don’t move assets from one bank account to another!  These transfers show up as new deposits and complicate the application process, as you must then 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 later if you need to.
3. Don’t change jobs!  A new job may involve a probation period, which must be satisfied before income from the new job can be considered for qualifying purposes.
4. 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 meet closing costs.
5. Don’t run a credit report on yourself!   Many times once you run one on yourself you may choose to dispute inaccurate information.  Doing this during the loan process could actually damage your score or affect your loan eligibility!
6. Do not apply for ANY credit whatsoever, and do not allow anyone to run your credit report for any reason. Even an inquiry can affect your loan eligibility!
7. Don’t attempt to consolidate bills before speaking with your lender!  The lender can advise you if this needs to be done.
8. Don’t pack or ship information needed for the loan application!  Important paperwork such as W-2 forms, divorce decrees, recent pay stubs, last 2 monthly bank statements, last quarter of retirement accounts, copy of legal docs such as social security awards letters, workers comp award letters, divorce decrees and tax returns should not be sent with your household goods. Duplicate copies take weeks to obtain, and could stall the closing date on your transaction.