7 Things You Should NOT Do Before Applying For A Home Loan.

1. DON’T buy or lease an auto. The lender looks carefully at the debt-to-income ratio and a large payment, such as a car lease or purchase, may greatly impact those ratios and prevent you from qualifying.
2. DON’T move assets from one bank to another. These show up as new accounts and complicate the application process. If you do move accounts, you must disclose and document the source of funds for each new account and/or deposit. Consolidate your accounts after closing.
3. DON’T change jobs or give notice at your current employer. A new job may involve a probation period, which must be satisfied before the income from that job may be considered for qualifying purposes.
4. DON’T buy new furniture or major appliances for “new house.” If the new purchase increases your debt load, it can disqualify you from the loan or deplete your funds for closing. Some lenders pull a new credit report just prior to closing.
5. DON’T attempt to consolidate bills before speaking with your lender. The lender will advise you if this needs to be done.
6. DON’T pack or ship information that may be needed for the loan application. Important paperwork such as: two years tax returns and W-2s, two months of most recent bank and brokerage statements, divorce decree, closing statement (HUD-1) if you’ve just sold a home.
7. DON'T have any personal property written in the purchase contract for the new home.

*Courtesy of Michelle Piccari, Mortgage Planner American Equity Mortgage