Things Not To Do
(before buying a home)

1. Don't buy a car. When you buy a car the car payment reduces the amount of money you will be eligible to finance in a home loan. Stick with that clunker until after you have closed on your home.

2. Don't make major purchases, for the same reason you shouldn't buy a car. Aside from having to move it all to your new home, it will have a negative effect on your mortgage application.

3. Don't move money around. If you have checking accounts, savings etc. moving money between the accounts causes extra verification of funds from the lender. The lender must verify your sources of income. Moving money between accounts inflates and deflates income sources. Lenders must then create a "paper trail" to verify your actual income.

4. Don't jump into that next career until talking to your lender. Some career moves are fine, especially if you will be earning more per year. But if you are paid hourly or on commission it cause a problem in proving your ability to make your mortgage payments. Be on the safe side and ask your lender how a job change may affect your ability to buy a home.

5. Don't settle for anything less than the home you really want! Hunting for a new home can get exasperating, especially when you have spent many hours on it. Be patient, your perfect home is waiting for you. And getting the perfect home makes it easier to pay the mortgage because you are truly happy.

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