You have made that big decision, but there are some things not to do before buying a home. Whether you are selling your current home or are a first time buyer, there are some things you should never do before completing the transaction. Because buying a home isn't an impulse buy, you will have a few months notice before you actually go through with the sale, in most cases.

First, don't play with your finances. Don't spread your wealth around, buy new stock, invest in a new money market account, open a new checking or savings account. The institution who looks at your finances will look at all of your finances in an attempt to determine your liquid assets and your net worth. You will want to make this as easy for this person as possible. If you diversify your finances too much, your disclosure process will be much more difficult.

Buying a new stock or investing your money within six months before buying the new home will reduce your liquidity and maybe hamper your ability to buy a new home. Wait until after you buy to invest your money elsewhere.

If you are fed up with your bank, hang in there a few months and change banks after you buy your home.

All major purchases need to wait until after the deal is closed. Weddings, cars, furniture, appliances, electronics can all wait until you are in your new home. By purchasing something major ahead of time, you limit the amount of money you will need for a down payment. If life comes at you and you have to make a major purchase, put it on a low interest credit card. Just be certain the emergency is a genuine emergency before you make a major purchase.

Ideally, your debt to income ratio should be 50%. That means your mortgage and insurance payments should be no more than 50% of your gross monthly income. Be certain your estimated final mortgage payment is within your budget and do not over buy a home. If you are currently paying $700 a month in rent, you may not be able to pay $1600 for that six bedroom home plus an additional money for home owner's insurance.

Do not change jobs. Sometimes, you cannot help a change, such as getting laid off or fired. If that happens, you would be wise to delay your home purchase for at least six months after you find a new position. Longevity in employment is an important factor in getting financing approved.