1. Waiting until you can make a 20% down payment.

With the mortgage rates where they are today, waiting until you  have 20% down could be a big mistake. In time, mortgage rates and home prices will go up.


2. Meeting with only one lender .

Lenders’ offers and interest rates vary.  Getting a slightly lower can save you big bucks over the long haul.


3. Getting pre-qualified versus pre-approved are very different.

Pre-qualified is a basic overview of a borrowers ability to get a loan.  The paperwork showing your income, assets, debts, and credit aren’t required.  Whereas with a pre-approval, the borrower must provide the supporting paperwork and a credit check is required. The pre-approval letter provided by the lender shows a financing commitment up to a certain loan amount.


4. Moving money around.

To get pre-approved, you have to show you have enough cash in reserves to afford the down payment. The underwriter will check to see that your finances have remained the same.  The last thing you want to do is move money around while you are in the process of buying a home.


5. Changing jobs.

Lenders like to see two years of consist income history when pre-approving a loan.  Consequently, changing jobs while you’re under contract on a home can create a big issue in the eyes of the underwriter.


6. Applying for new lines of credit.

If you apply for a new credit card or increase credit limits a few months before closing, watch out!  Credit inquires ding your credit score by up to five points.  In fact, applying for multiple lines of credit while your buying a house, can make the lender think you are desperate for money.