Thinking of Buying a Home? Here are 5 things you should not do before buying a home

Five Things You Should Not Do Before Buying a Home



Here a few things that you should NOT do for at least 6-8 months before buying a house.

1. Do not make any Major Purchases

If you're buying a home, don't invest in any major purchases. Cars, weddings, jewelry, furniture and electronics. All that can wait until you're settled in your new home. When you make a major purchase, you’re limiting the amount of money available for your down payment.

2. Do Not Move Your Money Around

When a Broker reviews your loan package for approval, one of the things they are concerned about is the source of funds for your down payment and closing costs. Most likely, you will be asked to provide statements for the last 6 or 8 months on any of your liquid assets. This includes checking accounts, savings accounts, certificates of deposit, stock statements, mutual funds, and even your company pension or retirement accounts.

3. Do Not Make Large Investments

If you've come across a new stock in which you'd like to invest or if it's a great
time to buy, wait it out till you’ve finalized your home finances.


4.Do Not Change Your Bank

Changing banks is always a hectic ordeal, so don't do it before buying a home. You'll have to provide information about previous accounts that are now closed, and therefore inaccessible. If you're fed up with your bank and want to change, tough it out a little longer and switch after your mortgage is approved.
This will save you hours of headaches and frustration.

5. Do Not Change Job Unless Absolutely Necessary

Try not to change jobs. Your employment is a key factor in the mortgage approval process, and if you can't show steady employment, you might be denied. Of course, you can't help matters if you've just been laid off or an opportunity presents itself that you can't pass up. If you're going to change jobs before buying a home, wait another six months before going ahead with the real estate transaction. This gives you an opportunity to establish employment and to show a steady
income of pay checks from a single employer. This looks much better on a loan application than a long list of recent employers.