Be sure to follow these rules:

Don’t apply for new credit or accumulate new debt. It’s tempting to apply for a new store credit card offering added discounts on top of sale prices, but just filling out an application could be risky for your credit profile. Opening a line of credit requires a credit inquiry, which could not only stall your mortgage loan application but also impact your debt-to-income ratio. It could make a lender believe your a greater risk than they originally appeared. Home buyers need to avoid any major purchases, such as furniture or a car, before the home buying process is complete.

Don’t transfer large amounts of money. Home buyers need to keep their money in one place as they await closing. Shuffling money between accounts can send red flags to lenders and make them concerned about undocumented funds or money troubles they may not have spotted beforehand.

Watch the gift money. If families are offering cash for holiday presents, buyers need to be aware that this may put their mortgage applications at risk. Lenders will be scrutinizing their accounts and looking for unusual deposits, such as those that are 50 percent or more of their monthly income. They are also looking for any unusual withdrawals. Buyers may need to be prepared to explain any large deposits or withdrawals.

Compliments of Realtors Magazine