Before You Buy A Home: 5 Things To Avoid If You're Getting Financing

When purchasing a property and financing is involved then buyers should be more aware of what banks will need and require from them.  The guidelines are stricter then years past. 

Most lenders rely on the information provided to them and if that information does not satisfy the guidelines then the loan process won't even get started or will quickly get derailed, so here are 4 things to do long before you start buying a home.

Don't change jobs.

If you can stay in your job or at least in the same line of work, do so. Lenders like stability and a change in jobs, and especially in the type of job equals instability and additional risk.  Most like to see at least 2 years at the same place of employment.  Even once you're approved and in the process of buying don't change jobs or even positions in the same company.

Don't pay off bills specifically for the loan process.

Do pay your bills, but it's how you pay them and when you pay them that matters.  Sometimes paying off the bill in full at the cost of a lower bank balance can cause problems for your loan, since lenders like to see reserves.

Don't move money.

Moving money from one bank to another creates a distraction and another trail to follow.  Keep it where it is.  Money sources and locations will be verified so any changes can be difficult to verify.

Don't spend to much or make major purchases.

A common mistake is for a borrower to purchase a new car or new furniture for the home.  Don't make the mistake of reducing your bank balance or taking on credit during the buying process.

Consistency, reliability, stability and proof are key words in the buying process.  The more stable the more safe you are for a lender the more likely they are to give you a loan.  Better yet, get advisement from your Realtor and lender long before you decide to buy, because good preparation usually pays off in a smoother transaction and a better loan.