There are four major things to avoid doing before applying for a loan and during the loan process itself. Any one of these four things can greatly impact your ability to qualify for a mortgage loan so it is critical to avoid doing any until after your loan has closed escrow:
Changing jobs before or during the loan process can create a real problem in qualifying for a loan, particularly if that job is in a different line of work or at a lower rate of pay. During the loan process, it can also create time delays since the new job will need to be verified.
It is best to leave your money right where it is until your loan is closed. Moving your money to a new bank, or even to a new account, can wreak havoc with the verification process.
Your loan officer will advise you if it is necessary to pay off bills to help you qualify for a loan. They will also show you the best way to pay off bills to make sure you have the evidence you need to prove that the bills have been paid.
Many borrowers make the mistake of buying a new car, some furniture, or another major item without realizing the impact it can have on their ability to buy a home. A large monthly payment can affect the amount of home you can qualify for and, during the loan process itself, actually make it extrememly difficult to get your loan approved.
If you must do any of the things listed above (even if you've recently been prequalified for a loan), contact your loan officer. He/She can help by requalifying you, if necessary, and advising you of your options. By avoiding these four blunders, you can look forward to a successful loan closing.