Lenders are interested in seeing stable employment history. Going into self-employment is also not a good idea, as it may translate into unstable income.
Same goes for changing banks. Lenders prefer to see stable financial history.
Fancy a new ride? You can buy it, as long as you don't finance it, or lease it. Having a new line of credit on your account will adversly affect your debt to income ratio.
At least not yet. Making large ticket item purchases will also affect your credit, so it's better that you wait until after you close on the purchase of your home.
Large deposits, especially cash, will prompt the lender to question their source. Ideally, you should maintain a steady bank account balance. Lenders also like that the funds in your accounts were there for at least two months prior to your loan application.
Make sure to list all of your income and liabilities on your loan application.
Charging too much is never a good thing, especially when applying for a home loan. Also beware of charging in excess of your credit limit, as it will affect your credit rating. Finally, don't open or close any credit cards - even if you don't use them.
Co-siging a loan for some else will affect your debt to income (DTI) ratio. It's not a good idea, even if you will not be the one making the payment for such loan.
Seeking new lines of credit will be perceived by the mortgage lender as a higher credit risk.
When you are buying a house there will be closing costs associated with it, most of which will be payable at closing. Having sufficient funds set aside is important, and it's best to budget wisely. While applying for a mortgage, you should request from your lender the Good Faith Estimate, which outlines the closing costs.
If you have any questions, or need a guidance in obtaining a home loan, please give us a call at 718.FOR.SALE (718.367.7253).