Our guide to success is here to help ease the process becoming a homeowner. However, if you have done any of the things below do not worry, your chances are still excellent for buying the home you always wanted or refinancing for a better rate.

Debt to Income Ratios

When lenders determine your ability to qualify for a mortgage, they look at your debt to income ratio as well as your credit history. Your debt to income ratio is the percentage of your gross monthly income vs. what you spend on debt. This can also include what you will be paying in taxes and insurance for your home, car payments, homeowners association dues and fees, student loans, any loans you currently are co-signing on, consumer debt, and also includes principal balances of your debt.

No Major Purchases

Whenever you think about purchasing that new car or buying more on credit, think again. If you add on $500 more per month in payments and make $6,000 per month in income, you could be reducing the amount you can borrow on a new house or refinanced mortgage by over $50,000.

Do Not Move Money Around or Change Banks

Mortgage companies will often require you to provide them with 2 or 3 months worth of bank statements, W2's or pay stubs to prove where your income originates ,as well as where your down payment is coming from. You may believe that consolidating your assets will make things easier when it comes time to close on your new house, but moving your money around could make it more difficult for both you and the mortgage company to properly document where your down payment is coming from to the lending institution.

Can I Change Jobs?

For the most part it is not advisable to change jobs right before you are planning to purchase a home or refinance. However, if you are a salaried employee and will be making more money, changing employers may not affect your ability to qualify. Consult with your Mortgage Specialist before making such a move.