Are you in the process of buying a home?

Here's a guideline sheet about what to avoid doing while you're buying a home.

For example, making a big ticket purchase before your loan closes could be trouble.

That's because there are still a few major hurdles you must overcome before the house is really yours.

Here are some actions to stay away from before closing, to assure your transaction goes smoothly.

Don't empty your wallet on big-ticket items You may be itching to turn your new kitchen into a home magazine cover, or celebrate your new dream home, but stay away from expensive purchases, like furniture, jewelry, appliances, or vacations, until closing. Your credit numbers could be altered suddenly if you make a huge purchase using credit cards. Since lenders are reviewing your financial accounts, a large cash purchase is also a mistake.

Don't get a new career. Stability in your work history is a positive thing to banks and other lenders. Changing jobs may not affect your ability to qualify for a loan - particularly, if you are getting a better salary. But in some cases, changing jobs during the loan approval process might raise concerns and stymie your application.

Don't switch banks or move cash around in your accounts. Your lending institution will require you to submit recent bank statements of accounts in your name: savings, checking, money market, and other assets. To eliminate fraud, lenders need clear documentation of how you earn your living and where additional money comes from. Switching banks or transferring finances elsewhere - even if it's just to pool funds - could make it harder for the lender to review your funds.

Don't give cash directly to your seller (commonly in cases of "for sale by owner") to be used as a "good faith" deposit. Until the sale is complete, any earnest money actually belongs to you. Some FSBO sellers might not realize that any good faith funds must be used for your expenses upon closing. It's best to put the funds into a trust account, or get a neutral person, like an attorney, to hold them until the closing of the sale. Should your home purchase fail, your purchase agreement should document to whom the good faith funds should go.

At Contemporary Mortgage Services, Inc., we answer questions about this process every day. Give us a call at 407-834-3377.