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10 Things to Not Do Before Buying A Home


People often hear about all the things they should do before buying a home, but they do not hear very often about the things they should not do. When you have decided to buy a home or if you are mortgage refinancing, you will want to know about these ten things not to do before buying the home and they will help make it easier to qualify for your home loan. 


1. You should not co-sign on loans, whether they are a mortgage refinance loan or any other loan, because that will go toward your debt and could make it harder for you to quality for your home loan. 


2. You should not switch bank accounts within several months before you go to purchase a home. Your lender will want to see the two most recent bank statements for the last two months and if you have switched bank accounts you will have to provide extra documentation. 


3. Qualifying for a home mortgage means that you will need a steady form of income, so you should not switch jobs right before your purchase. 


4.  If it looks to the lender like you are spending your very last penny on this mortgage, they might not give it to you, so you should not spend your money recklessly. If this happens, you may end up having to get a bad credit mortgage. 


5.  Another thing that will lower your credit score is setting up new accounts, so if you want to set up an account to buy new furniture for your home, you should not do it until after you have closed your home loan. 


6. Making large deposits or withdrawals will tell the lender that the money is not ‘seasoned’ and you might be asked to document any of these transactions. The money that you have saved for your down payment needs to be in there for a while, so you should not to move your money around in large sums. 


7. If you are late on other credit loans, it could show up on your credit score and ruin the chances of your getting the home loan. You should not be late paying any other debt. 


8. You should not pay your rent with anything but a verified check. If you have to show your lender the last year’s worth of cancelled checks to verify your history, you will want to have it, rather than having nothing because you paid in cash. 


9. Going out of town in the middle of the loan process can really slow it down and could cause you to even not get the house if you are unable to respond to questions. You should not skip town when you are in the middle of this process. 


10. Your credit score can sometimes be brought down if you get it checked too often, so you should not get it pulled for at least six months before you buy a home.