What Not to Do Before Buying a Home
- No Major Purchases
Don't purchase any large items such as cars, appliances, furniture etc. that would contribute to debt. Excess debt could hinder your ability to get a mortgage with a good interest rate or a mortgage at all.
- Don't Move Money Around
When you are under review for a mortgage, the lender will look at checking and savings account statements for the last couple of months as well as statements from money market funds, certificates of deposit, stock statements, mutual funds, 401K, and retirement accounts. If you move money around among these accounts, you will have to provide a paper trail to the lender, which may make it more difficult for yourself and the lender. It is probably not a good idea to change banks either, that is where your savings and checking accounts are located.
- Don't Change Jobs
Most lenders like to see a person that has been in the same job for about 2 years. Someone who changes employment frequently may seem to be a risk for the lender because there is a higher probability that they will out of work and unable to make the monthly payments on the mortgage. This doesn't apply to promotions within the same company; that could have a positive affect on obtaining a mortgage.
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