11/1/2019By Realopoly staff
Dont change jobs while shopping for a house.
10. Lenders are interested in seeing stable employment history. Going into self-employment is also not a good idea, as it may translate into unstable income.
Dont open or close bank accounts.
9. Don't open or close bank accounts. Lenders prefer to see stable financial history. 
Dont buy a car when buying a house
8. Fancy a new ride? You can buy it, as long as you don't finance it, or lease it. Having a new line of credit on your account will adversely affect your debt to income ratio.
Dont buy furniture when applying for a mortgage
7. Don't buy furniture - at least not yet. Making large ticket item purchases will also affect your credit, so it's better that you wait until after you close on the purchase of your home.
Dont make large transactions.
6. Large deposits, especially cash, will prompt the lender to question their source. Ideally, you should maintain a steady bank account balance. Lenders also like that the funds in your accounts were there for at least two months prior to your loan application.
Dont misrepresent your income and liabilities.
5. Make sure to list all of your income and liabilities on your loan application.
Dont charge a lot on your credit cards.
4. Charging too much is never a good thing, especially when applying for a home loan. Also beware of charging in excess of your credit limit, as it will affect your credit rating. Finally, don't open or close any credit cards - even if you don't use them.
Dont co-sign for any loans.
3. Co-siging a loan for some else will affect your debt to income (DTI) ratio. It's not a good idea, even if you will not be the one making the payment for such loan.
Dont cause new credit inquiries on your credit.
2. Avoid seeking new lines of credit, since that can be, perceived by the mortgage lender, as a higher credit risk.
Dont spend your closing money.
1. When you are buying a house there will be closing costs associated with it, most of which will be payable at closing. Having sufficient funds set aside is important, and it's best to budget wisely. While applying for a mortgage, you should request from your lender the Good Faith Estimate, which outlines the closing costs.
This article should not be considered as a legal or financial advice. Always consult your specific case with a financial professional prior to applying for a mortgage, or other financial instruments.