Borrower Don'ts

• Avoid Expensive Purchases. It may be tempting to order new furniture, but its best to avoid making major purchases like furniture, cars, appliances, electronic equipment, jewelry, or taking vacations until after the closing. Anything that you finance could jeopardize your credit worthiness during the time it means the most. Additionally, if you make a large case purchase that too can create a problem as lenders take into consideration the cash you have sitting in both your checking and savings account as they approve your mortgage loan. 
   
• Don't Get A New Job. Lenders want to see a consistent job history. Generally, changing jobs to a position where you will be making more money will not affect your ability to qualify for your loan, but in some circumstances, getting a new job during the loan approval process will raise lender concerns and affect your application.
  
• Don't Switch Banks Or Move Money Around. As your lender reviews your loan package, you will likely be asked to provide bank statements for the last two or three months on your checking accounts, savings accounts, money market funds and other liquid assets. To eliminate potential fraud, most loans require a thorough paper trail to document the source of all funds. Changing banks or transferring money to another account - even if it’s just to consolidate resources - could make it difficult for or delay the lender’s ability to document your funds.
   
• Don't Give A Good Faith Deposit Directly To The Seller In A For Sale By Owner Purchase. As a rule, your good faith deposit belongs to you, not to the seller, until the deal closes. Your FSBO seller may not know that your good faith funds should be applied to your expenses at closing. Place your good faith deposit in a trust account, or get an attorney or other neutral party to hold the deposit until you close on the home. Your purchase contract should dictate to whom the funds go should the transaction fall through.
  
• Don't Disregard Your Lenders Requirements. You may have been pre-approved for the loan but your work with the lender is far from over. In order to process your loan, you need to meet certain requirements. Your lender will need copies of your bank statements, W2s and other paperwork. It is up to you to get it to him or her as soon as possible. Failure to submit certain qualifying documents in a timely manner could cause you to lose your loan and the financing you need to buy your home.