Things to avoid before buying a home or refinancing your mortgage

You could end up shooting yourself in the foot if you do not follow some simple suggestions while waiting for your loan to close.

• Dont make an expensive purchase. It is best to avoid making major purchases like furniture, cars, and appliances until after the closing. Don't max out your credit cards and do not open up any new lines of credit. These actions can "shock" your credit scores, sending them lower and even potentially disqualifying you altogether. We have a saying in the mortgage industry, "Don't buy a car before you close on your house unless you want to live in the car." Please be patient! Using cash to purchase big items can also create a problem because many banks take into consideration your cash reserves when approving your mortgage.
• Dont change jobs. Lenders like to see a consistent job history. Generally, changing jobs will not affect your ability to qualify for a mortgage loan - especially if you are going to be making more money. But for some people, getting a new job during the loan approval process could raise some concern and affect your application. Also, if you are in the process of switching jobs during your loan closing, if the lender cannot verify employment, your loan will not fund.
• Dont switch banks or move money around. As your lender reviews your loan package, you will likely be asked to provide bank statements for the last two or three months on your checking accounts, savings accounts, money market funds and other liquid assets. To eliminate potential fraud, most loans require a thorough paper trail to document the source of all funds. Changing banks or transferring money to another account - even if its just to consolidate funds - could make it difficult for the lender to document your funds.
• Dont disregard your lenders requirements. You may have been pre-approved for the loan but your work with the lender is far from over. In order to process your loan, you need to meet certain requirements. I will need copies of your bank statements, W2s and other paperwork. It is up to you to get it to me as soon as possible. Failure to submit certain qualifying documents could cause you to lose your loan.