What You Should Know When

Preparing for a Home Loan

Applying for a loan is a pretty big step to buying a home. It determines just how much home you'll be able to afford based on the amount of loan you qualify for... or whether you'll qualify for a loan at all! When you apply for a loan, your broker or loan officer will take an in-depth look at your credit history, debt, and expenses to determine how reliable a borrower you are, so before applying for a loan you want to make sure your finances look pretty good. Here are some things that can throw up red flags and hurt your chances of getting a good loan, good rates, or qualifying at all.

The DON'Ts of Applying for a Mortgage


  • DON'T make any major purchases (eg: new car, boat, jewelry, furniture, larger apartment)
  • DON'T open any new credit cards, even if it gets you a discount.
  • DON'T apply for any new credit until AFTER you close on your mortgage.
  • DON'T transfer credit card balances from one account to another.
  • DON'T pay charge-offs without first discussing it with your lender.
  • DON'T pay collections without first discussing it with your lender.
  • DON'T pay off any loans or credit cards without first discussing it with your lender.
  • DON'T close any credit card accounts.
  • DON'T max out or overcharge your credit card accounts.
  • DON'T consolidate your debt onto one or two cards.
  • DON'T take out a new loan.
  • DON'T refinance any elective medical procedures.


  • DON'T quit your job or start at a new company.
  • DON'T switch from a salaried job to a heavily-commissioned job.


  • DON'T change bank accounts.
  • DON'T transfer large sums of money between bank accounts.
  • DON'T forget to pay your bills—even the ones in dispute.
  • DON'T accept a cash gift without filling out the proper paperwork.
  • DON'T make random, undocumented deposits into your bank account.

Ready to Find Your Home in Wilmington?

Are you thinking of buying a home in Wilmington, NC? Then it's time to contact Mike Bain Realty. We're here to help you explore the area, discover its beautiful neighborhoods, and find the perfect home for your unique needs. Check our our buyer resources below, or just give us a call at any time!