So you are in the market for a new house.
There are certain factors which can put a brake on your plans.
Avoid making any new, lavish purchases.
Hold off on the expensive diamonds, five-star vacation and the swanky new car.
Do not move your money between accounts prior to applying for a home loan.
One of the first things you will be asked by the lender is bank statements for any of your accounts for the last two or three months.
You may be asked to furnish transaction particulars of your checking account, savings account, stock certificates, deposit certificates and retirement fund accounts.
If you make al number of withdrawals and deposits, they will show up on your statement.
Your lender may ask to see the entire trail of transactions which could prove to be time consuming.
If you are a salaried employee or a hourly worker, changing jobs should not have any bearing on your loan application.
However, if a bulk of your income, comes from commissioned earnings, it is advisable not to change jobs before applying for a loan.
Likewise for bonuses.
This is because lenders may not be able to calculate if future earnings are going to be at the same level as present.
It creates an uncertainty about your ability to keep up payments in the future.
Similarly, part time employees and self employed people should not consider a job switch or in the case of self employed people, should avoid changing from, say, a proprietorship to a partnership.