Buying a home is an exciting time! There ARE common pitfalls that can not only derail a home purchase, but they can even cause you to be liable for a commission even if the deal does not go through. I don’t want that to happen to YOU!

That’s why I wanted to share with you the top six things that get buyers in trouble. While this is not a complete list, it’s a good place to start!

Let me know if you have any questions.

1. ADD NEW DEBT

Do not add new debts.

Refrain from initiating any new loans or credit lines, such as credit cards or payday loans. Even cosigning a loan can negatively impact your credit report by increasing your debt load, which might alter your lender’s assessment of your ability to finance a mortgage.

2. MISS PAYMENTS

Do not miss any scheduled payments.

Keep your credit score healthy and demonstrate reliability by making all payments on time. Consider setting up automatic payments to help manage this effectively.

3. MAKE A MAJOR PURCHASE

Do not make any major purchases.

Preserve your available cash and assets by postponing any large expenditures like vehicles, boats, or expensive home furnishings until after your home loan is fully processed and closed. Changes in assets could trigger a red flag with your lender, creating delays in underwriting your loan or result in the loan being denied.

4. CLOSE CREDIT ACCOUNTS OR MAKE UNUSUAL DEPOSITS

Do not close or pay off credit accounts. Even you have no balance, keep the account open for the time being.

Contrary to what might seem beneficial, closing credit accounts can hurt your credit score. Similarly, making large, unexplained deposits can raise concerns with lenders, possibly complicating your loan approval.

5. QUIT YOUR JOB OR CHANGE CAREER

Do not quit your job, retire, switch employers or change careers.

Any significant change in employment can affect your income levels and influence your mortgage application. It’s wise to discuss any potential job changes with your lender before making a decision.

6. MAKE BANKING CHANGES

Do not change banks, open or close accounts, or make large transfers between accounts.

Switching banks during the mortgage process or doing anything that changes the balance of your accounts can introduce delays, as your lender might need updated documentation.

PS: Have questions? I am here to help! Call me anytime!