Congratulations on your decision to buy a Northern Virginia/South Carolina home.  You've set aside some money for your down payment and closing costs (loan origination fees, appraisal, home inspection, points and PMI, etc).  You're excited about the prospect of a new home.  However, before you run out and make other major life changes or purchases, please read what NOT to do before buying a home.

Moving Your Money Around - When you apply for a home loan, you will be asked to provide proof of your income and any assets you have (including your checking, savings, 401(K), money market accounts, stocks, etc) for the last two or three months.  A mortgage lender will review all these statements to help determine your ability to afford your mortgage payments.  If you move money between these accounts during those two to three months or even during the time you are applying for a home loan, you will be required to provide a paper trail to show why you moved the money, where it went, what it was used for, etc.  This is typical with most lenders.  It can get very time-consuming and, oftentimes, frustrating.  Don't move any money until after you have spoken with your lender to avoid any potential problems.

Changing Employers - Lenders want to see that you have a steady income.  In some instances, changing jobs can raise a red flag.  For full-time hourly employees and salaried employees, a job change most likely will not affect your loan, providing you are changing to a job that is similar in compensation to the previous job.  However, if you are a part-time employee, rely on overtime or bonuses for your income or are a commissioned employee, changing jobs can have a drastic affect on your income.  This can significantly harm your chances for a loan approval.  Also, if you are mulling over the idea of starting your own business, wait until after you have been approved for your Northern Virginia/South Carolina home.

Making Major Purchases - A new home means new furniture, electronics and appliances, right?  Nope!  Major purchases increase your debt-to-income ratio, lowering your credit score and making you a less desirable candidate for a home loan.  Other major purchases to avoid in the two to three months before you buy a Northern Virginia/South Carolina home and during the home loan process itself include buying a car, jewelry, vacations and weddings.

Knowing what not to do before buying a home can be just as helpful as knowing what needs to be done.  If you have any questions, please feel free to contact me.

Gene Mock, your Northern Virginia, South Carolina, Maryland and Washington DC real estate specialist