Buyer Checklist: What Not To Do

Congratulations on your decision to purchase a new home. In order to make sure you have a smooth closing, here is a checklist of things you should not do as you move through this process.

Don't...

1. Don’t buy a car

2. Don’t buy new furniture for your home (or any large purchase)

3. Don’t make any large cash deposits into your bank account

4. Don’t exaggerate your income when talking to the lender

5. Don’t apply for credit—avoid any hard inquiries on your credit

6. Save enough money to cover your closing costs

7. Don’t overextend yourself—keep your debt balances at around 30% of your credit limit or less

8. Don’t co-sign for anyone on a loan or rental application

9. Don’t get behind on any loans or utility payments

10. Be cautious about consolidating your debt—ask your lender first

11. Don’t change careers

12. Don’t shift your finances around

13. Don’t change your bank

14. Don’t close any existing credit cards

15. Don’t increase your credit limits

16. Don’t max out your credit cards

17. Don’t open any new credit card accounts

Do

Wait until you have signed the papers on your new home and it is fully funded before making any big changes in your finances. If you make any of these mistakes before your loan closes, it could disqualify you from the loan, and you won’t be able to close on your new home.

Source: The Close