Want A Loan? Here's What NOT To Do

The buyers are back and houses are selling.   Don't sabotage your chances of getting the money you need for the home you want.

Our friends at Prospect Mortgage say if you're applying for a loan, here is what NOT to do, and some of it is surprising:

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. In quire 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 collection.  If about to pay a bill in collection, wait and pay it at closing.

16. Have a friend or family member pay for anything related to the purchase of the home, since gifts are only allowed under certain guidelines. 

I admit, some of these were a surprise to me.  Such as not making a deposit greater than $300 and not paying down credit card debt.  But when you're asking to borrow money, best to do things the Lender's way.