The Do’s and Don’ts During the Home Buying Process

Dated: 10/12/2018

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DON’T open any new bank accounts. Keep all your banking the same.

DON’T open any new credit cards. Pay everything off every month. Don't buy more than you can afford (that's also good advice when buying a home).

DON’T make any large deposits into your accounts unless you have approval from your lender. Of course, any regular payroll deposits are okay. Don’t deposit cash without first speaking with your loan officer. All deposits must have a paper trail.

DON’T consolidate any loans, transfer any loan balances, refinance your car or lease a new car without first talking with your mortgage professional.

DON’T co-sign a loan for anyone.

DON’T use credit cards excessively or let them fall past due.

DON’T move any funds from your 401k or cash in any long-term funds like an IRA without approval from your lender.

DON’T apply for any new credit cards. Don’t buy any furniture or appliances. Save that for after you’ve purchased the home.

DON’T change jobs while purchasing a new home. Doing so may cause a delay in your home purchase. You’ll need to provide your lender 30 days worth of paystubs. 

DO everything your loan officer tells you. DO stay in touch with them. Communication is vital and timing is critical throughout the home buying process. 

DO provide all the documents that your loan officer requests. They’re going to ask for your most recent pay stubs for all jobs for the past 30 days. The most recent W2s for the past 2 years as well as all pages of your Federal Tax Returns for the past 2 years. All pages of your bank statements. Screen shots from your mobile phone won’t work. Log into your online banking and print out the statements. Print out every page (even if it’s blank). Be prepared to provide updated statements, pay-stubs, etc. even though your lender asked for them and you previously provided them. 

DO meet with your lender and obtain a pre-approval before you find the home you want. Do this before you even go shopping. 

You’ll know in advance what your payments will be on the offers you chose to make ... and ... this will help you during the negotiation of the home purchase with the seller, especially if there are multiple offers on the home.

Here are some questions you can ask your loan officer?

How much home can I afford? What will my down payment be? What will my closing costs be? Can the seller help with those closings costs? Will I have to pay for Mortgage Insurance Premium or PMI Insurance? 

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