CREDIT SLIP UPS BY BUYERS 
You’ve decided to buy a house, and you need financing. Even if you have good credit, you should keep your 
finances shipshape until closing so that lenders won’t think twice. 
Here are 10 things to avoid while you’re buying a home: 
1. Don’t change your job before applying for a home loan. Also, now is not the right time to become selfemployed 
or to quit your job. You want to show lenders stability, which means you’ll be less likely to default on 
the loan. 
2. Don’t change banks. As with your employment, you want your banking history to show stability. 
3. Don’t buy a car that you have to finance. Buying a vehicle or any other form of transportation through a 
loan increases your debt-to-income ratio, and loan officers don’t want to see that. 
4. Don’t buy furniture on credit before buying your house. Charging big-ticket items increases your debtto- 
income ratio. Save your money for the down payment. 
5. Don’t be late on your credit card payments or charge excessively. You need a track record of 
responsibility that shows you can manage your money. 
6. Don’t make large deposits into your bank accounts. Lenders like it when the money for your down 
payment has been sitting in your account for at least two months – what they call “seasoning” – so that the 
funds don’t just appear out of the ether. 
7. Don’t lie on your loan application. Sounds simple, right? But don’t leave out any debts or liabilities or 
fudge your income. It’s fraud. 
8. Don’t co-sign a loan for anyone. Even if you’re not making the payments on that loan, co-signing 
increases your debt-to-income ratio.