Don’t Furnish the Home Before You Own It!
It’s understandable that you’re excited and have daydreamed about the furniture you want for your new home. However, you shouldn’t make big purchases during the home buying process. If a large debit appears in your checking or savings account, the lender could take this as an indication that there won’t be enough funds set aside for a ‘rainy day’, and you’re not making sound financial decisions. The lender’s primary focus is protecting their interests and making sure you will be able to fulfill your obligation of repaying the mortgage loan. You could be denied for a mortgage loan, even if you’ve already received a pre-approval. It’s best to wait until after closing to buy your new furniture.
Avoid Changing Jobs!
When you apply for a mortgage, lenders will request your work history for the previous 2 years and full tax returns and W-2’s for 2 years. Lenders want to see that you’ve been employed by the same company for 2 consecutive years and that you haven’t had multiple jobs. If you’ve bounced from job to job, lenders will think you’re unstable and there will be a high possibility that you will default on the loan. It’s possible that a new job will have better pay. However, changing jobs during the home buying process could disqualify you for a mortgage loan. Wait until after closing to change jobs.
