NEW YORK (TheStreet) — Once you find the perfect home, secure financing and sign the contract, you may be ready to pop open some champagne and start picking out curtains. Be careful, though. There are several mistakes you may make as a would-be homeowner that will derail a closing or drive your interest rate higher.
When you apply for a mortgage, the first credit check your lender runs won’t be the last. Another credit check is performed just before you close. If there are negative changes in your credit score, you could be saying goodbye to your dream home before you ever put the key in the door.
1. Change in job status
Banks want stability, and if you show them you're changing jobs at such an important time in your life, they may think twice about offering you a mortgage.
“A change in job status from part time to full time is fine, but not the other way around,” says Greg McBride, chief financial analyst for Bankrate.com. “Going from employee to contractor, or salary to commission, it’s just not a good move.”
Read More: 5 Signs It's Time to Buy a Home
If you’re moving to a better job with a higher salary, the change won’t torpedo your closing, but it might delay it.
“You would be required to show new paystubs, even if you’re moving to a much better job,” he says.
Changing positions within the same company is not likely to raise red flags as long as your salary stays the same.