BUYER DO's and DONT's !

If you are thinking of buying a new home, be it your first or fifth, take a look through this list and understand what you should and should not do before applying for a loan AND during the escrow process once you have identified a new home!

Homebuyer Do’s and Don’ts:

Recommended DO’S:

Recommended DON’TS:

ü DO continue to make payments on time for current mortgages, cars, credit cards, etc.

ü DO paper trail, document, and explain any large or unusual deposits or withdrawals into accounts (checking, savings, stock, etc.).

ü DO keep pay stubs, bank statements, tax forms, etc., in case the lender needs to update the documentation prior to closing.

ü DO ask questions if something is unclear about the loan program, fees, and/or loan conditions.

ü DO let the loan officer or mortgage broker know if anything changes. For example; employment, income, assets, credit history, etc.

ü DO document that the earnest money deposit has cleared your account — obtain a copy of the cancelled check and/or the statement that reflects the funds have cleared.

ü DO lock-in the interest rate, have homeowner’s insurance agent information available and provide updated documentation (pay stubs, bank statements, etc.) in a timely manner so as not to delay the closing.

ü DO NOT increase credit card balances and/or loan balances.

ü DO NOT apply for additional or new credit or put balances on a paid credit card.

ü DO NOT ignore late payment and/or collection notices that are received during the mortgage process.

ü DO NOT purchase anything that is “same as cash” — it will show on the credit report as a new debt.

ü DO NOT buy furniture, cars, or appliances on credit until after closing.

ü DO NOT lend money to family members, friends, etc. if it is needed for closing.

ü DO NOT store money at home, place it in a bank account so it can be documented as savings throughout the loan process and can qualify as assets on hand.

ü DO NOT have overdrafts on a checking account.

ü DO NOT quit or change jobs during the loan process.