You’ve found the house of your dreams, you’ve negotiated a great price and you can’t wait to move in.  Between the time you’ve negotiated the purchase agreement and the closing there are a five things you should NOT do.

1. Don’t make any major purchases.  Don’t buy a new car, don’t order furniture for the new house, don’t spend $20,000 on a wedding.  Between the time you get pre-approved for a mortgage and the time you actually close on your new home don’t do anything that significantly changes your debt-to-income ratio.  Your lender is going to check your credit again close to the time of closing.

2.  Don’t start making late payments.  Again, your lender is going to have to check your credit after you already have a pre-approval so don’t start mucking up your credit report just because you think you’re already in the clear – you aren’t!

3.  Don’t start moving money around.  If you had a few grand in savings when you got pre-approved leave it there.  Don’t put it in a money market, don’t put it in your IRA.  Just leave it alone until after you own your new house.  Moving money around looks sneaky.  Lenders are finicky so don’t give them anything to worry about. 

4.  Don’t get fired from your job (don’t quit either).  Any changes in your employment status will effect your ability to get a loan.  Remember, how much you qualify for is partly based on your employment history.

5.  Don’t get a promotion with a raise.  Okay, this one doesn’t apply to everyone, but if you’re in a loan program with a great interest rate that has an income cap make sure you don’t get yourself kicked out of the program by making too much money.  Ask your boss to hold off until after the closing. 

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