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You’ve made the decision to buy a home. Congratulations! 

Buying a home is a significant milestone in life and often a major financial decision. It's a process that requires careful consideration and thorough planning to ensure a successful purchase. Whether you're a first-time homebuyer or have previous experience, knowing the dos and don'ts of buying a home can help you navigate the process with confidence and avoid common pitfalls. Here’s a helpful list to keep you “moving” while you're buying a home:

DO - Trust your mortgage professional.  

Your realtor understands that their success depends very much on your lender’s experience and guidance of their buyers. If they didn’t believe you were in good hands, they wouldn’t have recommended us. Have faith that your loan officer wants nothing more than to see your offer accepted.

DON’T – Make any sudden career changes.

If you are contemplating changing jobs, talk to your loan officer. Generally it isn’t advised until you close, but may be allowed for the right upward position. This is not the time to start a new business since you will then need tax returns filed for us to consider it. Income stability and predictability are crucial for loan approval. Love your job…at least for now.

DO – Prepare to explain large deposits.   

If a monthly deposit totals more than 25% of your monthly income and isn’t clearly payroll, we are required to have you paper trail the source of funds. To keep the process going smoothly, it is best not to move large sums around at all. If you sell something, copy everything. Essentially, your lender needs to rule out undisclosed loans or inadmissible funds. And while you may find security in keeping cash at home, know that “mattress money” needs to be banked and seasoned for us to consider it.

DON’T – Close bank accounts.   

Your lender will be documenting your deposit history at least two months back and perhaps more than once. If you close old accounts mid-process it can be very difficult for you to obtain the documentation we need. Remember that stability thing we need to prove? We’re just as excited to have you join us for ALL your banking needs, but keep your account records accessible until the end, just in case.

DO – Start filing and stop shredding. 

Your lender will be very interested in your income and deposit history, so save those pay stubs and bank statements. Online statements are often easily obtained but may take a little digging for more than summaries. What you got in the mail in the old days is what your lender will need a copy of electronically. Every. Single. (Sometimes strangely blank) page.

DON’T - Make any major purchases (or co-sign) anything that requires financing. 

If you don’t have true need, hold on financing that new large dollar item. You’ll be required to explain any recent credit checks and we’ll ask you more than once if you’ve obtained any new debt since applying. Co-signed debt is often counted against you even if someone else promises to make payment. Be upfront early and spare your lender and Realtor an audible gasp at closing by telling us about new loans on the big day. That gasp may be the first sound of a closing being halted.

DO – Save ahead for more than your down payment.  

Reserves are important. In addition to your down payment, you’ll have expenses like closing costs and perhaps a requirement for several months of reserves of payments above and beyond. If savings are limited, discuss low down payment options that may be available to you. You may be more ready to buy than you think!

DON’T - Open or close any credit cards. 

Opening new credit trade lines can lower your credit score since you don’t yet have a proven history of payments. Closing old trade lines can lower your credit scores if you depended on the age of your overall credit. Remember – trends are your friends.That brand new airline card may earn you a flight to Cancun but cost you on your mortgage rate.

Buying a home is a rewarding experience when done right. By following the dos and avoiding the don'ts of home buying, you can make a confident and informed decision. With careful planning and attention to detail, you'll be well on your way to finding the perfect home that meets your needs and brings you joy for years to come.