Don't Move Money Around

Don’t try to consolidate accounts or transfer money from one account to another without first speaking with your loan officer. When it is time to buy your home, the lender will require a complete paper trail of all withdrawals and deposits. You may be required to produce cancelled checks, deposit receipts, and other seemingly inconsequential data. The less moving of money, the easier this part of the process will be. 

No Major Purchases of Any Kind

Avoid any major purchase that would create debt of any kind. This includes furniture, appliances, electronic equipment, jewelry, vacations, expensive weddings, and automobiles of course.

The Effect of Changing Jobs

For most people, changing employers will not affect your ability to qualify for a mortgage loan, especially if you are going to be earning more money. For some homebuyers, however, the effects of changing jobs can be disastrous to your loan application.

Salaried Employees
If you are a salaried employee and do not earn additional income (commission, bonuses, over-time, etc.), changing jobs should not be a problem.

Hourly Employees
If you are an hourly employee and do not earn additional income (commission, bonuses, over-time, etc.), changing jobs should not be a problem.

Commissioned Employees
If a large part of your income is commission based, DO NOT change jobs before buying your home.  Most lenders will calculate commissioned income by averaging the last 2 years’ commissions.  If you are at the same employer, it is assumed you will make the same amount of money in the current year, however, if you are at a new employer, there is uncertainty as to how much money you will make.

If you receive bonuses on your new job and you are relying on these bonuses to qualify for a certain loan amount, DO NOT change jobs.  Lenders will rarely consider future bonuses for new employees.  Bonuses are normally considered if you are on a job and have been receiving bonuses consistently for 2 years or more.

Part-Time Employees
If you are a part-time employee, DO NOT change jobs.  There is no way to accurate calculate part-time income for new employees.

DO NOT change jobs if you are counting on using your over-time income to qualify for a home.  Over-time income is normally considered for long term employees with a track record of receiving over-time hours consistently, however, cannot be considered for new employees as there is no guarantee the over-time will continue.

Considering becoming self-employed?  DO NOT make this change until after you buy your home. Lenders will average 2 years of self-employment income to determine a borrower’s qualification.  Wait until after you buy your home to pursue your new career.

Please use this as a general guide only.  Before you make any financial decisions, consult your loan officer.  This could mean the difference between buying a new home or being stuck where you are for an additional 1-2 years.