7 Things Not To Do Before Qualifying and Closing On Your Home

Once you've made the decision to buy a home there are certain things you need to keep in mind in order to qualify for your home loan. But it doesn't just stop with qualification, you need to stay away from these pit falls straight through to closing. Sometimes homeowners get so excited once they qualify, they don't realize they can do things that will have an adverse effect on their credit between qualification and closing. Major changes just before you try to qualify for a loan or just after, can send lenders a red flag about the stability of the loan. Here are our top 7 "don'ts" to help you stay on top of the home loan process and out of hidden traps that could upset the course of your closing. Don't Change Jobs - This should be a no brainer. Mortgage companies want to see a strong job history while you are in the process of purchasing a home. Don't Close Credit Cards - Even though you are the one doing the closing this could have the opposite effect on your credit as you intended. You may be trying to tighten up your records, but it doesn't look good to loan companies. Don't Make Big Purchases on Credit - Yes you are excited that you've gotten approved and are about to buy a home, but don't go out and buy furniture, new cars, or other large purchases as this can effect your debt to income ratio and change the whole equation before closing. Don't Change Banks - Yes we all get disillusioned from time to time with our banks. Many of us may even threaten to change banks all the time. However, when you are trying to qualify for a home loan it's not the time to restart your financial history. You want a stable banking history when you apply for a home loan. Don't Co-sign on a Loan - You may think since you aren't the one making the payments it doesn't matter, but that's not the case. This still will show up as debt on your reports and increase your debt to income ratio. Don't Open New Lines of Credit - Credit inquiries can lower your credit, and opening new lines of credit can be a signal to your mortgage lender that you are higher risk. By being aware of these pitfalls and mistakes many an anxious would-be homeowner make you will set yourself up for a smoothly successful home buying experience from beginning to close.