These 7 things should not be done when applying for a loan or refi.
1. Do not buy or lease an auto/truck. Lenders look at total debt and this can push you right past the limit lenders set.
2. Do not move assets from one bank account to another. By doing this, it can complicate the application process. Lenders may make you disclose and document the source and transfers so that the lender can verify.
3. Do not change jobs. This sounds like a no brainer but it keeps happening. A new job may include a probation period which can mess up using the income for qualifying purposes.
4. Do not buy new furniture or appliances for the "New Home". After you sign your loan paperwork, the lender is likely to pull your credit one last time before funding the loan. There new purchases can push the debt ratios over the limit and keep you from getting the home. Wait until after you have the keys to make these purchases.
5. Do not consolidate bills before speaking with your lender. Your loan officer will let you know to do this or not.
6. Do not pack up the information you need to show your lender. Important paperwork such as W2s, trusts, tax returns and divorce papers should be kept available. Otherwise it could stall the closing process.