If you plan on getting a mortgage, you need to be extra cautious with your finances.  Here are the top 5 show stoppers you should avoid.

1.  Purchasing large ticket items.  Don’t buy a new car or even furniture until after the loan closes.  New payments will impact how much money you can borrow or can even prevent you from qualifying for a loan.
2. Paying late on bills. One 30-day late payment can subtract 80 to 110 points from your credit score.  Many lenders require at least 12 consecutive months of on-time payments
3. Shuffling money around. Lenders scrutinize all your bank statements as part of the approval process.  Any unusual deposits or withdrawals will require clear documentation of what they are.  A large sum of money transferred into an account right before closing could be lethal.
4. Job changes. Taking on a new job can present some hurdles as lenders like stable income that will likely continue.  Changing job fields or starting your own business will be a red flag.
5. Getting a new credit card. Even something as simple as getting a Kohl’s credit card will impact your credit score.

Give me a call if you want to work with a REALTOR® who can help you avoid the common pitfalls when buying your dream home.

Donna Forest, Broker Associate, 603-526-4116

Teamwork from the Team that works – Coldwell Banker Milestone Real Estate.