What NOT To Do Before Buying a Home

what not to do before buying a home

Mortgage rates are predicted to creep up in 2014 (see our San Diego 2013 Real Estate Year in Review for more details), and you might be thinking that now is the perfect time to sell your home and buy another.   If so, there are a few things NOT to do in the months before applying for that home loan. Certain large purchases and other financial actions immediately before buying a home can hurt your chances of getting approved for a mortgage loan.  Take a look at this list of what NOT to do before buying a home, and don’t be caught unawares!  (And if you have any other questions about financial dos and don’ts when it comes to buying a home, give Katie a call, or visit her Rancho Santa Fe Real Estate website!)


  1. DO NOT make any major purchases.  When a lender reviews your application for a loan, debt looks bad.  So avoid ANY debt you can.  Here are some things NOT to do before buying a home:
    1. Buy a car
    2. Buy any major furniture, appliances, electronics, or equipment or even vacations that will put you into debt
    3. Pay for an expensive wedding or other major event


  1. DO NOT move money around.  Loan officers will need to be able to look at statements documenting ALL your assets in the preceding few months.  This includes:
    1. Checking accounts
    2. Savings accounts
    3. Money market funds
    4. Certificates of deposit
    1. Stocks
    1. Mutual funds
    2. Retirement accounts

If you’ve been moving money between these accounts, large withdrawals and deposits will show up on your statements, and you will need to provide documentation for them – cancelled checks, receipts, and other information you may not have kept.


Basically, if you’re thinking of purchasing a home, DON’T acquire any other debt, and DON’T touch your funds for anything else in the preceding months!  This is the best way to assure a quick, hassle-free loan.   Good luck!  If you’d like more advice about the home buying or home selling process (and the do’s and don’ts that go along with them!) give Katie a call at 858-922-2226, and be sure to check out her Rancho Santa Fe Real Estate website!


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