Top 10 Things Not To Do During Your Home Loan Process
Make sure nothing gets in the way of achieving your home financing goals. Some DON’Ts may seem obvious, but others not so much. Check out this list to make sure you avoid the Top 10 DON’Ts during the process of buying or refinancing.
1. Don’t co-sign on any debt with relatives or friends.
2. Don’t transfer money between accounts, unless receiving complete documentation from your bank itemizing all transfers.
3. Don’t withdraw/deposit large sums into your checking/savings accounts unless absolutely necessary.
4. Don’t make any career moves.
5. Don’t allow your bank accounts to go in the negative, even if you have overdraft protection.
6. Don’t apply for new credit in any form, or apply for credit to consolidate.
7. Don’t have a friend or relative pay for anything related to the purchase of the home (appraisal, earnest money, down payment, etc.), since gifts are only allowed under certain guidelines.
8. Don’t keep cash in a safe or an overseas account if you plan to use these funds as a down payment. Inquire about how and when would be the best time to put funds into your U.S. bank account if needed.
9. Don’t close credit card accounts; if you close a credit card account, it may appear that your debt ratio has gone up.
10. Don’t give your personal information to anyone else who might run your credit report as credit inquiries may hurt your score.