Once you have made the decision to move and have found the 'One'... it is tough not to go out and prepare for your new home. If you have some extra equity left over that you didn't need for a down payment... i'ts even tougher not to go out and buy that dream car to go with your new home. Here is a list of Highly recommended DONT'S before you are settled into your new home:
1. Go Crazy with your Credit cards. Don't buy any major purchases, cars, boats, furniture or anything of substantial value that could accrue debt befor closing. These new amounts can affect your debt-to-income ratio.
2. Move around your money. You will need to clarify any unusal deposits or withdrawls. Lenders will require a papertrail if you are using gift funds toward a down payment or towards your closing costs.
3. Get behind on your monthly bills. Late payments hit your credit report before your closing date and can stop a deal if they have been neglected.
4. Co-Sign a Loan. You may love your extended family or your bff.... but its especially risky during the mortgage lending process. You will automatically become financially liable for someone else's debt. Although you may have the most incredible trust in that family member or friend to make their payments without your assistance, you are still responsible for that debt as a co-signor and lenders still need to factor that monthy obligation into your affordability profile.
5. Changes in your Employment. Lenders are likely to stop a deal in its track if you have switched companies, positions or even in some cases if you get a promotion. Any change is significant. Keep your Mortgage Broker in the loop and inquire before any changes take place. They will let you know when the best move possible with help get you into that dream home.