To help your loan approval go smoothly, here are their Top 10 Things to Avoid During the Home Loan Process:

1. Accruing new debt
Example: Avoid taking out a new car loan or financing furniture before closing, as it can affect your debt-to-income ratio.

2. Spending money reserved for closing costs
Example: Be careful not to dip into your savings earmarked for closing—those funds need to be readily available.

3. Falling behind on bills
Example: Missing just one credit card or utility bill payment can lower your credit score and affect your loan terms.

4. Maxing out credit cards
Example: Keep your credit card balances low. A sudden spike in spending can signal financial instability to lenders.

5. Closing credit card accounts
Example: Even if you don’t use a card much, closing it can reduce your overall available credit and impact your score.

6. Changing jobs
Example: Lenders like to see stability, so changing jobs, especially in a different field, can make them question your income consistency.

7. Making large purchases
Example: Hold off on buying new appliances or a car until after closing to prevent any impact on your loan approval.

8. Switching banks
Example: Moving your money to a new bank can cause unnecessary delays in verifying your financial information.

9. Co-signing on loans
Example: Co-signing for someone else’s loan increases your liabilities, which can affect how much you qualify for.

10. Making large bank deposits
Example: Depositing a large sum of money without documentation can raise red flags for lenders and delay the approval process.