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Financing Hurdles to Avoid When Purchasing a Home

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Buying a home can be a roller coaster ride with ups and downs on the track to closing. Often after a buyer has successfully passed the point of inspections and remedy agreements, the only remaining contingency is financing. Then the buyer receives their final loan commitment and excitedly heads towards closing.

After the lender commitment, buyers often become excited at the prospect of a new beginning in their new home.  They begin to visualize themselves in this new space and sometimes get themselves ahead of the process. If you’re buying a home, be sure to avoid the following mistakes prior to closing:

  1. Applying for new credit and/or making large credit purchases. Lenders monitor your credit up to the closing date. If your ratios (debt-to-income) are marginal to begin with even a small purchase could push them over the limit. Then you’re stuck with a delayed closing or even worse- none at all. Hold off on buying that new couch until after closing!
  2. Borrowing funds for down payment or closing costs. Be upfront with your lender about where the funds are coming from. The lender will require documentation of the source, the sooner they receive it, the better.
  3. Starting a new job. Even if you’re making MORE money, most lenders require  1 month of pay stubs verifying employment. Speak with your lender before taking that new position to see what it means for your purchase.


These are just a few possible scenarios. For more info, be sure to check out the full article on

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