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Buying a home is one of the biggest financial decisions you will ever make. It is important to understand the variables that can improve, or even interrupt, the transaction. We’ve created a list of Do’s and Don’ts to follow to keep you on track during the process!

Do’s

Keep Your Job – Mortgage lenders usually look for two years of job stability, as a steady paycheck reflects a reliable income to pay off the mortgage

Pay All Bills on Time and In Full – a single overdue payment on rent, credit cards or any revolving debt can lower your credit score by up to 50 points, which could potentially ruin your chances of getting approved

Save as Much as Possible – cash in the bank gives you a cushion in case of emergencies

Verify Your Credit Report Information – just request a copy and review in detail

Protect Your Savings Account from Fraud

Save Pay Stubs and Bank Statements – underwriters need two consecutive months

Document Large Bank Account Deposits

Make Sure the Information on Your Mortgage Application Doesn’t Change After Pre-Approval – it could affect your eligibility, interest rate, or home buying budget

Alert Your Lender of Major Financial Changes – in income, employment, or retirement

Be Available for Conference Calls with Creditors – who may need to verify information

Dont’s

Make Any Major Purchases – they impact your credit score or debt to income ratio, decreasing the loan amount you qualify for

Expand Your Credit – don’t increase balances on your current credit cards, apply for new credit cards, allow credit inquires, or co-sign for a loan or credit line

Close or Consolidate Credit Card Accounts – this will decrease your credit capacity and lower your credit score

Make Large Transactions Without Documentation – your lender will want to see deposit and withdrawal slips, check copies, and all loan paperwork

Hopefully following this helpful tip will insure a successful, smooth transaction.

Evduza Ramaj

Inside Realty