12 things to avoid

When applying for a mortgage


When lenders review your loan application, they like to see consistency in your finances. You'll want to avoid:

1

Making major purchases such as furniture, appliances, jewelry, vehicles or vacations.

2

Changing or quitting your job.

3

Withdrawing, depositing or moving large amounts of money in or out of your bank account.

4

Paying off debts or collections (unless told to do so by your mortgage broker).

5

Using cash for a good-faith deposit — cash is difficult to verify and could result in a closing delay.

6

Pulling your credit report too many times — this can hurt your credit score.

7

Missing car, credit card, student loan and other debt payments.

8

Co-signing on a loan, which makes you partially responsible for that debt.

9

Giving your realtor a pre-approval letter with too high of an amount.

10

Not saving enough for a down payment or borrowing money for your down payment.

11

Having business debt under your name.

12

Not establishing a solid credit history.