Last week I began my discussion on how to attain a home loan in today's credit tight economy. I spoke last week about income and credit requirements that you need to qualify for a home loan, and I also talked a little bit about the different types of home loans that are currently available to consumers.
Today I will be discussing the things that you should not do when you are looking to buy a home. I have created a list of ten things that you should not do when you are about to apply for a home loan. The idea behind this list is that before you apply for a home loan, you do not want to do anything that is going to increase your debt, reduce your income or lower your credit score. In fact, you should obey this list not only before you apply for a home loan, but you should obey the list all the way until your home loan has been reviewed and approved by the underwriting department or after you close on your home.
Here are the ten commandments when applying for a real estate loan. I hope you find this useful.
- Thou shalt not change jobs, become self-employed or quit your job.
- Thou shalt not buy a car, truck or van (or you may be living in it)!
- Thou shalt not use charge cards excessively or let your accounts fall behind.
- Thou shalt not spend money you have set aside for closing.
- Thou shalt not omit debts or liabilities from your loan application.
- Thou shalt not buy furniture.
- Thou shalt not originate any inquiries into your credit.
- Thou shalt not make large deposits without first checking with your loan officer.
- Thou shalt not change bank accounts.
- Thou shalt not co-sign a loan for anyone.