1. Don't Make any Major Purchases

You just found out your credit is fantastic, that's great because a new car would look spectacular in the driveway of your new home. But unless you´re buying the home outright for all cash, you had better wait until escrow closes to buy that car.

Increasing your debt to income ratio will reduce your monthly income available for your mortgage payment. If this happens, the bank might decide you can't afford the home because your monthly debt obligations have increased.

On the other hand, using cash to purchase the car might also create a problem since banks require cash reserves when approving your mortgage. If you must make a major purchase before escrow closes, make sure you talk to your loan officer and ensure it won´t change any of the terms of the financing.  

2. Don't Change Jobs Unless It's Necessary

Lenders like to see a consistent job history. They aren't usually as nervous if you change jobs within the same field, but it's always better to wait and make the change after the house is yours.  

3. When Working With A For Sale By Owner, Do Not Directly Give Them An Earnest Money Deposit

Some for sale by owner sellers don't understand that the funds are not there to spend until after escrow has closed. Your good faith deposit should always go into a trust account; this is usually handled by your realtor or your title/escrow company.

It´s not uncommon that sellers will spend the deposit money prior to closing. Then, when the transaction doesn´t go through for valid reasons such as financing or repair issues, the buyers had to fight for a refund.

Find a neutral party who will hold the deposit for you until closing day and make sure your contract dictates what happens to the funds if the transaction doesn't close.

4. Don´t Do It By Yourself

Work with an agent. It's the agent´s responsibility to track many of the day to day details that involve the lender, the title company, inspectors, the seller, and the seller's agent. Be sure your agent schedules a final walkthrough just before closing.

5. Don't Let Your Emotions Make Your Decisions

It is important to stay rational during the entire home buying process, especially during and after a home inspection. Be reasonable and realistic. No home is perfect, especially older homes. It's not uncommon for new owners to make some of the repairs themselves. Don't let an impasse with the seller like their refusal to do a small repair kill the deal on a home you truly love.

On the other hand, stay realistic in terms of what you handle emotionally and financially and stick to it. Don't fall in love with the house so much that you'll buy it no matter what. Remember, stick to the plan.

6. Remember To Switch The Utilities

Call the utility companies as soon as you have a contract. Find out how many days lead time they need to switch the service. It sounds really simple, but you'd be surprised by how many people forget to apply for utility service at their new home. And don't forget to discontinue services at your old home.

7. Don't Forget To Get Home Insurance

Before the close your lender will want to see an insurance binder showing you´re insured on your new home. It usually takes at least a couple days, so don´t wait until the last minute. Get it as soon as possible so that closing isn't delayed. Depending on which area you´re buying in, additional types of insurance may be required by your lender. Make sure to find out from your real estate agent or lender.  

8. Don't Get To Friendly With The Seller

Ok, I know you are probably asking why...but it´s for good reason. Sometimes emotions and personality conflicts can cloud judgments. Please don't get into to long discussions with the sellers about the home.

Remember, it is still their home! Obviously you're excited about moving in, and you obviously liked the house or you wouldn't have offered to buy it, and you'll make changes, everyone does. But a casual statement about "getting rid of that ugly carpet" might be hurtful enough to keep the seller from negotiating with you on repairs or other issues that could come up.

9. Don't Panic If You Receive A Low Appraisal.

It happens. It´s not the first time and it won´t be the last. And it´s not necessarily the end of the world. There are some things you (and your agent) can do to correct the problem. Have your agent explain your options to you and choose the appropriate solution.  

10. Don't Ignore Lender Requirements

Understand what is expected of you and make sure it is taken care of. For example, a Certificate of Eligibility is required to move forward on a VA loan. That's something you must handle yourself. It´s important to answer lender questions and provide required paperwork as quickly as possible to give ample time for processing and approvals so that closing is not delayed, your new home depends on it.