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10 "DO NOT DO" rules before buying a home.


Here are 10 things you don’t want to do while you’re in the process of buying a home: 

1. DO NOT change your job and even less decide to become self-employed as you will be required minimum 2 years income taxes. Lenders want income stability so you are less likely to default on the loan.

2. DO NOT change banks or you will be required a lot of information in order to source your deposits.

3. DO NOT buy anything once you have prequalified with your loan officer. Any new purchase will increase your debt-to-income ratios and thus might result in a loan denial.

4. DO NOT buy furniture on credit before closing. EVEN if you are promised no interest payments until the future. Loans have been denied at closing day due to new debts undisclosed at application. Lenders and Banks review your credit again on closing day.

5. DO NOT be late on your credit card payments nor increase its balances. Your loan approval is based on first credit score enquire. Any other credit move might result in loan being denied in the middle of the process.

6. DO NOT make any cash deposits 2 months prior a loan submission!

Limit your deposits preferably from your work related compensation. All deposits need to be sourced and explained or else banks and lenders might not accept your asset account. Your down payment needs to be “sitting” in your account for at least two months prior to application (known as  “seasoning”) so funds don’t just appear “out of nowhere”.

7. DO NOT lie on your loan application. Sounds simple, right? Omitting recent debts not showing on credit or liabilities you have or fudge your income is fraud.

8. DO NOT co-sign a loan for anyone. Even if you’re not the one making the payments on that loan, it will show up on your credit and thus increase your debt-to-income ratio.

9. DO NOT make too many inquiries on your credit. Looking for new credit translates into higher risk for lenders. If your inquiries are related to your mortgage search, it usually doesn’t affect your credit score because the assumption is you are rate shopping. But opening credit accounts within a short period of time represents some risk and your credit could take a hit. It’s probably not a huge factor in your calculating your ability to repay a loan but why take a chance at this juncture?

10. DO NOT spend the money you will need for closing costs. Part of the price of financing a loan is the closing costs and you’ll likely have some responsibility for paying them. Make sure you have enough saved for your share of the obligation.

Don't wait any longer and find out how much you can get Pre-Approved for.

Whether you are considering purchasing or refinancing an existing FHA mortgage loan, Clear Lending can help you. Simply complete our secure and encrypted Pre-Approval Form online and we will contact you right away to review best options for you.

This advertisement is not an offer for an extension of credit. Programs available only to qualified borrowers. Programs subject to change without notice. Underwriting terms and conditions apply. Some restrictions may apply.



Customers Reviews:

  • Bobby & Dyann • September 09, 2017

    Joan is awesome! He helped us secure a home loan in a very short time. After being rejected, losing money and valuable time with another organization, Joan accomplished what I thought was impossible. I found Joan to be knowledgeable, professional and driven in his efforts to get us approved. He communicated to us throughout the process and was responsive to my questions and concerns. I would recommend anyone looking at purchasing a home to contact Joan and he will make it happen. He is great! Thanks Joan!!

  • Guillermo Canseco • January 12, 2015

    Estimado Sr. Gallardo buenos días,

    Hay pocas cosas que se comparen con el comprar una casa. Para mi y mi familia esto es un sueño y ustedes fueron una parte esencial de esto, en verdad no encuentro palabras para agradecerles su apoyo, profesionalismo y su paciencia. Creo que una de las mejores formas de decir gracias es con referencias y creanme que dudo que haya un servicio comparable al que ustedes brindan, por lo que los recomendaré a cuanta persona encuentre buscando una casa.

    De corazón, muchas gracias a todos...

    Lo mejor para ustedes y sus familias en este 2015.

    Un abrazo

    Guillermo Canseco

  • Vincent Bullen • July 10, 2017

    It was a pleasure to work with Joan and Elena at Clear Lending Mortgage. They guided us through the process step by step and were always available to answer questions. They worked with our situation, and made it possible for us to purchase our first home. I would recommend them without reservation.

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