Top 10 Things You Should NOT Do When Buying a Home

• Don’t change your job before submitting a loan inquiry for a home loan. Along with that, now is not the right time to become self-employed or quit your job. You want to show lenders stability, which means you’ll be less likely to default on the loan.
• Don’t change banks. Like your employment, you want your banking history to show stability.
• Don’t buy a car or truck or any other form of transportation that you have to finance. Buying one increases your debt-to-income ratio and that’s something loan officers don’t want to see.
• Don’t buy furniture on credit before buying your house. Like financing a car, charging big-ticket items increases your debt-to-income ratio and now is not the time.
• Don’t be late on your credit card payments or charge excessively. You need a track record of responsibility and show that you can manage your money.
• Don’t make large or cash deposits into your bank accounts. Lenders like the money that will be your down payment to be sitting in your account for at least two months – what they call “seasoning” – so that the funds don’t just appear out of the ether.
• Don’t lie on your loan inquiry. Sounds simple, right? But don’t leave out any debts or liabilities you have or fudge your income. It’s fraud.
• Don’t co-sign a loan for anyone. Even if you’re not the one making the payments on that loan, it increases your debt-to-income ratio.
  Don’t have inquiries made into your credit. Looking for new credit translates into higher risk for lenders. But opening credit accounts within a short period of time represents some risk and your credit could take a hit. It’s probably not a huge factor in your calculating your ability to repay a loan but why take a chance at this juncture?
• Don’t spend your money for closing costs. Part of the price of financing a loan is the closing costs and you likely have some responsibility for paying them. Make sure you have enough for your share of the obligation.