at least from the same type of industry. These actions are highly questioned, especially if they lead to your main income no longer being based on a monthly salary, but on commissions or performance bonuses. The unstable nature of a commission- based income might threaten your chance of securing a mortgage. If you do have to change jobs, please let your lender know as soon as possible.
4. Don’t Ever Cosign a Loan
If a family member or friend comes to you and asks you to cosign a loan for them, please say no. Everything I read about cosigning tells me it is a bad idea. Remember, any loan you cosign will show up on your credit report as one of your own debts. If your family member or friend does not pay the loan or misses payments, it will affect your credit (and the lender will come to you for payment).
5. Don’t Make Large Deposits or Cash Deposits into Your Bank
Lenders prefer that you have the money for your down payment in the same account for at least two to three months. If you sell an asset in order to buy a home, the lender might ask questions (no worries though, just provide honest answers). If family is going to give you money as a gift, try to deposit it in your bank ahead of time. Having a letter stating that it is a gift is also a good idea (and might be required by your lender). This kind of income should be cleared with the lender early in the process, to avoid it being considered as debt.
6. Don’t Miss Loan Payments
Make sure you stay on time with all your loan payments, even after you have received your loan commitment from your lender. Remember a credit report can be pulled right up until closing, so make sure you don’t miss any payments.
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