I compiled a list of common mistakes people usually make, and I hope this is helpful for some first time home buyer

1) Don't forget to make the payments on any of your present loans or credit cards. This is obvious, but there's a lot going on once you start the process and once in awhile it happens – in the rush of events you forget to make a payment. And since credit reports have a normal 120 day shelf life, it is quite likely that an updated report will be necessary before finding and closing on a house. If a late payment shows up, this can put the loan (and escrow close) in jeopardy.

2) Don't fail to inform your loan agent of any changes to the transaction. Last minute changes such as lender holdbacks, seller credits or required termite work can create havoc with closing dates.

3) Don't quit or change your job. Lenders are likely to call your employer just before the loan records to verify you're still there. If you aren't, the lender will stop the loan from recording.

4) Don't leave town without leaving a contact phone number until all loan approval conditions are met. You may be needed for a decision or to provide additional documentation.

5) Don't consolidate credit card debt from several cards into one. A new card with one balance at the limit GIVES a lower credit score than three cards, each with balances below the limit.

6) Don't sell stock for down payment without keeping a record of the liquidation. Same reasoning as 7) above.

7) Don't move money designated for down payment from one account to another. This creates confusion. If you move funds, advise the lender in advance and keep a detailed paper trail.

8) Don't file for divorce. Once you file for divorce, most lenders will not make a mortgage loan until the final decree, setting forth settlement terms, is recorded.

9) Don't incur any new debt. This increases your debt-to-income ratio, potentially reducing the amount you can borrow. It can also lower your credit score because new debt has a negative impact on credit scores.

10) Don't respond to "you are pre-approved for a credit card" mailings. A credit inquiry might result, and thus the same impact as 11), above.

11) Don't even go shopping for a car, not to mention, don't buy one. If you must visit the showroom, don't give your social security number to anyone. This enables the dealer to check your credit. Each credit inquiry lowers your credit score even if you do not buy a car.

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Thanks for your post. In can be very hard for first time home buyers to remember what to do and not to do, and this sort of list is certainly helpful. Here in Minnesota, our team does a monthly first time home buyer seminar where we go over the ins and outs of buying your first home. Only issue right now: we need more homes for sale, more inventory on the MLS.

Don't get caught having an affair. You managed to keep it a secret this long, keep it secret until after the closing.

Exchange experience with FBI agent.

Your right most of the first time home buyers won't remember all of that on the list. But, somehow still an informative and useful tips for the first time home buyers.

Good things to remember, thanks for the list. I have actually had a client buy a car a week before escrow was due to close-caused some trouble but we worked it out

<quote> I have actually had a client buy a car a week before escrow was due

I had that same thing happen to me during a VA repo forclosure when the veterans administration was directly funding the loan and they charged him with purposely causing the loan to fall thru and they kept his earnest money... its possible we could have gotten it back with a law suit, but my buyer decided to let it go as it was only $500 and he still wanted to buy a foreclosure from VA and did not want to [censored] them off..

I recently had a buyer purchase an 80K BMW 2 weeks before closing. Both the LO and I told him not to make any big purchases before closing but why listen to the professionals... His loan was denied, I'm out a commission, he has a great ride, and still lives in an apartment.

The buyer should beware, as its possible he could get sued for doing some to purposefully make the loan fall thru...
This 300 second time delay between posts sucks... its damn near impossible to carry on a conversation when you have to wait 5 min between posts.... i know its for spam, but makes you want to move on to a forum that is not so strict...

Don't go shopping for furniture or appliances on credit. Those stores are almost as bad as car dealers when it comes to shopping a loan for your purchase. The sales office may shop your loan to several different sources in a matter of minutes. Each one of those inquiries can ding your credit.

Don't get married without discussing the financial impact with your loan officer.