WHAT YOU DON'T WANT TO DO IF YOU ARE BUYING A HOME OR REFINANCING YOUR CURRENT HOME

The KCM Blog had an excellent report of some long held principles of lending, and they deserve to be mentioned here.  Please take this information to heart if you are in the process of getting a home loan for whatever reason.  Because if you don't, your loan may be denied.  Here they are... 1) Don't increase your cash reserves beyond what you stated and proved.  Money needs to be seasoned and traced.  A sudden deposit or gift money that was unannounced could have consequences.  2) Avoid large purchases: your debt ratios have been figured to the penny.  A large purchase could bring them out of whack and cause you to be denied.  3) Don't co-sign for anyone else.  Even though you are just a co-signer, that debt must be figured into your ratios also.  4) Don't change banks.  Your verification was done with your bank, don't make the loan processor start over, it will delay your loan.  5) Don't apply for major credit.  Every time you apply, your fico score changes.  6) Don't close accounts; the lender will want to know where you're going, as in leaving town?  Changing that doesn't bode well.