To buy a home, you will need to demonstrate you have the funds available. For most of us, that involves a mortgage loan. The mortgage process can be complicated. Continue reading to learn what you should not do before purchasing a home.

Once the lender has begun your financing approval process. The mortgage company relies on the documentation of your financial situation at the time of your application.  If you do anything like the following examples, before the closing date, it can cause a substantial delay or even a failure to qualify for a mortgage.

Buy a car:

A car is a large purchase and can increase your debt-to income ratio. This ratio is used by lenders to determine the amount of a mortgage that you can afford. A car purchase can ultimately reduce your ability to afford a home.

Transfer money between accounts:

To determine your eligibility for a loan, the lender will ask for statements from all accounts that have liquid assets. They will see withdrawals and deposits in different accounts if you move money between them, especially large amounts. It’s best to leave assets, such as funds for down payment and closing costs, where they are during this process so as not to raise any red flags.

Switch banks:

This can be combined with the transfer of money between accounts. This creates more paperwork for both you and your lender. Keep your current bank open until the mortgage is approved. This will make things easier for both you and the lender.

Change Jobs:

Changing jobs could impact your mortgage approval. Lenders will require at least two years of employment before they approve you for a loan. To become self-employed, wait until you have secured your home purchase.

Apply for or cancel a credit card:

If you have good credit, a credit score inquiry will not affect your credit. However, the lender may question your financial stability in order to purchase a home.

Buy a large amount of furniture:

Furniture is a must when you buy a house but a large increase on your credit line could send a red flag. Best to resist the temptation to buy a new sofa set until after the home purchase is complete. 

It is important to avoid buying anything that could make you appear like you don’t have your finances in order.