There are 5 major things to avoid before and during the loan process.  Any one of these five things can greatly impact your ability to obtain or secure a mortgage.  It is imperative to wait until after you have closed on your home before embarking. 

1. DO NOT CHANGE JOBS

Changing your job before or during the loan process can create a real problem in qualifying you for a loan, particularly if that job is in a different line of work or at a lower rate of pay than your current job.  Many loan programs require borrowers to have a two-year work history.  During the loan process, it can create time delays as the new job will need to be verified and you will need to provide a copy of your first pay stub prior to closing. 

2. DO NOT SWITCH BANKS OR MOVE YOUR MONEY

It is best to leave your money where it is until your loan has closed.  Moving your money to a new bank or even into a new account can wreak havoc with the verification process.  Most new accounts opened or large deposits made in the last six months will have to be explained as to the source of funds.  If you are transferring money from an investment or retirement accounts, make sure you keep the withdrawal/deposit receipts and make sure you clearly show where you deposited the money. 

3. PAYING OFF BILLS

Your loan officer will advise you if it is necessary to pay off bills to help you qualify for a loan.  They will also show you the best way to pay off bills to make sure you have evidence needed to verify the bill has been paid in full. 

4. DO NOT MAKE ANY MAJOR PURCHASES

As tempting as it may be, do not start shopping for furniture.  Buying big-ticket items, like TVs, cars, furniture, etc., changes your debit ratios, which may alter the amount of a home loan you can qualify for, or make it difficult to get it approved. 

5. PROTECT YOUR CREDIT

You may have heard this a thousand times, but what you may overlook is the little things.  Like for example, the 10% off your purchase if you sign up for “store” credit card.  Any time you hand over your social security number, its best to assume they will be running a credit check on you.  This can affect your FICO score, thus decreasing your chances of qualifying for the best loans and rates.  Refrain from giving out your social security number (this would apply to even certain contests) and applying for any type of credit.