6 Things You Should NOT Do While Buying a Home

Posted by on Feb 23, 2011 in Blog, Buying Real Estate, Real Estate Lending | 0 comments

While you are in the process of buying a home there are some things you don’t want to do. I’ve seen people lose their mortgage approval on their new house because of one of these simple, yet important mistakes.

1. Do not lie or withhold information on your loan application. Lenders are becoming even more serious about tracking down every tid bit on a loan application. Lying is and always will be fraud.

2. Don’t have any companies run inquiries into your credit.  Something as simple as opening a new cell phone account or opening a department store store card could show as new open credit and could make you look more risky and cause your credit to take a hit.

3. Do not change jobs.  Lenders want to buyer to show stability and history which equates into a less risky borrower.
4. Do not go out and buy all new furniture for your house before you buy your house. I once heard about a gentleman who opened a credit card at a local furniture store in Columbus and charged $15k worth of furniture for his new house on his new credit card.  Because of the increase in his loan to debt ratio, he no longer qualified for the loan and was unable to close on his house.  BUT, he had some nice furniture, I hope he was able to return.

5. Do not change banks.  This is similar to the job history, lenders want to see consistency and history.

6. Do not put large amount of cash into your bank accounts.  The bank are checking bank statements often throughout the loan process and will come asking questions if you have questionable deposits coming into your checking or savings account.  Even $500, can bring a loan officer asking for verification of funds.
Shanna Lafontaine is a Realtor who works the Dublin, Hilliard, Powell, Worthington, and surrounding Columbus areas helping both Buyers and Sellers.

Shanna Lafontaine is a Realtor with RE/MAX Affiliates who works the Dublin, Hilliard, Powell, Worthington, Westerville, Delaware and surrounding Columbus areas helping both Buyers and Sellers.

Shanna Lafontaine, LLC© 
RE/MAX Affiliates Inc. 7239 Sawmill Rd. Ste 210, Dublin, OH 43016

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