Things to AVOID when applying for a loan.

1. Don’t Buy or Lease an car before you apply for a Loan

When reviewing your loan application, lenders will look carefully at your debt-to-income ratio. A large payment such as a car lease or other significant purchase can negatively impact those ratios and prevent you from qualifying for a home loan. 

2. Don’t Change Jobs 

A new job may require a probation period, which must be satisfied before income from the new job can be considered for qualifying purposes. 

3. Don’t move assets from one bank account to another

These transfers appear as new deposits and complicate the application process, as you must disclose and document the source of funds for each new account. The lender can verify each account as it currently exists. You can consolidate your accounts later if necessary. If you are receiving a gift from a family member to help pay for your downpayment, DO NOT move those funds into your account. When you are in escrow, the person giving you that money will wire those funds directly to escrow.

4. Dont attempt to consolidate bills before speaking with your lender

The lender can advise you if this is necessary.