You can unknowingly sabotage your home financing goals by making some obvious and not-so-obvious moves with your finances.   Check out the list below to see if you know the top 16 things NOT to do when you are in the process of buying or refinancing.

Do Not:

  1. Leave an existing job for any reason
  2. Open new bank accounts
  3. Close existing bank accounts
  4. Deposit funds over $300 into a bank account*
  5. Transfer money between accounts, unless receiving complete documentation from your bank, itemizing all transfers
  6. Allow your bank statements to go into a negative balance, even if you have overdraft protection
  7. Buy new furniture, a car, or make any other major purchase*
  8. Shop for furniture, a new car, or any major items, which may result in your credit being run
  9. Apply for any new credit
  10. Inquire about new credit or better rates on existing credit
  11. Co-sign on any debt with a family member or anyone else
  12. Ask a tenant to move out, or give your landlord notice that you are moving out*
  13. Stop paying credit card debt
  14. Stop paying any bills
  15. Pay a bill in collections. If about to pay a bill in collections from a collection agency, try to pay it at closing**
  16. Have a friend or family member pay for anything related to the purchase of the home (appraisal, earnest money, down payment, etc), since gifts are only allowed under certain guidelines.

We hope you find this helpful! 

Contact me before you start your home financing process. I can answer your questions and provide advice on how to prepare for a smooth and successful loan closing! Guest Post courtesy of: Jeff Kobold Branch Manager, Prospect Mortgage 891 Main St. Unit B Osterville, MA 02655 Cell: 508-221-6254 NMLS# 423207; Branch ID 603612 I Am licensed to originate mortgage loans in the following states: MA

*Check with me prior to making this change just to be sure it won’t affect your loan eligibility.¬†

**Paying a collection will greatly affect credit score and should be delayed (if at all possible) until the loan closes, then pay the collection at closing date. It will affect your score later, but won’t affect you getting the particular loan you are applying for. Loan inquiries and applications in states where I am not licensed¬†will be referred to a Loan officer who is licensed in the property state. equal housing lender. Prospect mortgage is located at 15301 Ventura Blvd Suite D300, Sherman Oaks, CA 91403.¬† Prospect Mortgage, LLC (Unique Identifier #3295) is a Delaware limited liability company licensed by the department of Corporations¬†under the California Residential Mortgage Lending Act and operates with the following licenses; AK mortgage Lender/Broker License # AK3296; AZ Mortgage Banker License #BK0903027; to Check the license status of your CO mortgage broker, visit; GA residential Mortgage License License #16984; IL Residential Mortgage Licensee #6424; MA Mortgage Lender/Broker License #MC3296; MS Licensed Mortgage Co; MT Residential¬†Mortgage Lender Licensee #120; NV division of Mortgage Banker #1173 and Mortgage Broker #3095; Licensed by the NH Banking Dept; Licensed Banker-NJ Dept of Banking and Insurance #9932414; Operates of Prospect Lending, LLC in NY (Licensed Mortgage Banker – New York States Department of Banking. This is not an offer for extension of credit or a commitment to lend. All loans must satisfy company underwriting guidelines. Information and pricing are subject to change at any time and without notice. This is not an offer to enter into a rate lock agreement under MN law, or any other applicable law.

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