You have found the home of your dreams! You have made an offer, written your deposit check and the offer has been accepted! You are on your way to owning your new home! Everyone is telling you the things you need to do, get a loan, get an inspection, find an insurance company....but when buying your home, has anyone told you what NOT to do when buying a home?

Yes, there are things you should NOT do when buying a home!

• Shopping Spree! One of the things many new home buyers want to do is go shopping. New furniture, new appliances, new barbecues! It is important to remember while you are in the process of buying a home, you are qualifying for a loan. Any additional debt may affect your ability to qualify! So do not go out and run up your credit cards, buy a new car or spend the money you have saved for these things, as it may be used in qualifying for your loan. Lenders often times have used savings as "reserves" and without those reserve funds you may not qualify! Even if you think you have provided them all the documentation they need, they may ask for updated information throughout the process.
• Quit your job! Again, you are in the process of getting a loan. Your approval is based on a certain income used from your job! You may think that you are getting a better job with the potential for more money because now you will be getting commissions on top of a lower base salary. If you have not been making commissions in your current job, this will not work in calculating your income. Prior to making any career changes, talk to your loan officer to see what the requirements are from the lender in order to make this change. It is possible to make this happen while obtaining a loan, but you do not want to make any changes without finding out the ramifications. Even if you think you are days from closing and it won't make a difference-most lenders verify employment on the day of closing. Don't jeopardize your new home if you can wait to make the change after you close.
• Do it yourself credit repair! So you have some old collection accounts you think should be paid off prior to applying for a loan. Of course you want to make sure you are in a position to obtain a loan, but paying off an old collection may actually hurt your credit score more than help it. Be sure and talk to your lender about your credit. They can let you know what will help you the most in repairing your credit. It may be better to let those old collections sit! (And you have saved a few bucks!) Talk to a professional prior to making decisions that may not help the situation!
• Large Deposits! When reviewing your loan for approval, your lender is looking at your income and asset documentation. This will include current bank statements. If you show large deposits on your statement and are using these funds for closing costs and down payments, the source of these large deposits need to be documented. But I just sold my grandmothers antique diamond ring? I should be able to use the $4000 I received-well, you may be able to use it if is documented properly. The lender may ask you to prove ownership, prove market value of the piece and provide a bill of sale. WHAT? I know, sounds crazy. If you are planning to do something like this for money to close, again, talk to your loan officer on how to handle the situation.

Along with the many things you NEED to do while buying your home, don't forget these things NOT to do while buying your home! You will have plenty of time to get your new furniture and barbecue! Make sure you avoid anything to cause you jeopardize your purchase in any way. If you have any question, make sure and consult with your loan officer or agent!

My mother always told me, patience is a virtue!