10 Things NOT to do While Applying For a Home Loan

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10 Things NOT to Do While Applying For a Home Loan:

10 Things NOT to do While Applying For a Home Loan (2)

When you are going through the process of getting a home loan, it is extremely important to follow what your loan officer tells you to do. There are some major don’ts when applying for a loan. We made a list of the top 10.

  1. Do not change jobs, become self-employed or quit your job. If you change jobs there is a certain amount of time that is needed before your loan can get approved.
  2. Do not buy a car, truck, or van… otherwise, that might be your new home! Applying for credit to purchase any type of vehicle will be reported as a credit inquiry by the credit bureaus. This could affect your credit in a negative way and even decrease the amount of money you are able to spend on your home purchase.
  3. Do not change credit cards excessively or let your ANY of your accounts fall behind. There are two negative effects when charging your credit cards excessively. The first thing that can happen is that inquiries will be recorded by the credit bureaus and could decrease your credit score. The second negative issue is that any credit card charged over 35% will affect your debt to income ratio therefore affecting your ability to buy a home.
  4. Do not spend the money you have set aside for closing. Without it, you will not be able to pay the costs of closing on your home. Most Conventional loans require at least 2 months of reserves in your account that can be verified. If you spend this money after the loan officer verify’s these funds, it can result in a delay in your loan or your loan could get denied.
  5. Do not buy any new furniture, appliances or expensive household items. You are most likely anxious to furnish your new home but during the home loan process is not the right time! Any large purchases causing a decrease in your bank account or debt on your credit card can be very bad for your home loan, even resulting in the denial of your loan. Wait  to buy new furniture after your home closes!
  6. Do not omit debts or liabilities  from your loan application. In order to get approved for your home loan, you need to always be upfront and honest about all of your debts and liabilities from the very beginning of the process. This will make everything crystal clear for your loan officer. When everyone is on the same page it makes for a smooth process.
  7. Do not originate any inquiries into your credit. We mentioned this above – any inquiries to your credit can result in a decreased credit score. This could potentially risk you getting approved for your home loan.
  8. Do not make large deposits without first checking with your loan officer. Any deposits that are not normal for you need to be run by your loan officer before you deposit the money into the bank. That goes for your checking, savings, or any financial account you have.
  9. Do not change bank accounts. The home loan process requires a 2-month history of bank statements of reserve funds. Opening a new account near your home’s closing date could void out the bank history. To be on the safe side wait to change banks until after your home is closed.
  10. Do not Co-Sign for anyone. Co-signing can also affect your credit report and decrease your score. That goes for co-signing on a car loan, student loan, or any other type of loan. Wait until after closing!


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All of these things could make a major impact when getting approved for a home loan. For recommendations on a good lender click here!  You can also call us 425-308-6641 to talk about which lenders are best for you!

Provided courtesy of The Diemert Properties Group Keller Williams Realty N.W.R.E., LLC Hire a professional, positive, and proactive team of Real Estate Specialists to help you sell or buy your next home! Call or text 425-308-6641 for information on Buyer’s & Seller’s Representation Services (NO COST TO HOMEBUYERS) Serving the following locations: All of Snohomish County, Island County, King County and Pierce County.


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