Dos of Buying a Home

• Do pay all your credit cards and any other debt on time before you even start considering a mortgage.

• Do keep a positive balance in all of your checking and savings accounts with su icient funds to close a loan.

• Do keep your money right where it is. Changing banks or moving money will require explanation, which will just be more paperwork for you and your lender.

• Do provide any documentation your loan originator asks for in a timely manner. It may seem like you are handing over quite a bit of information, keep in mind that you are asking the lender to trust you with hundreds of thousands of dollars.

• Do factor in your lifestyle. A lender will give you a range that includes the top end of how much home you can afford. That number is based on your current expenses, not the future.

Don’ts of Buying a Home

• Don’t buy a vehicle. Even if you are paying cash.

• Don’t quit your job.

• Don’t take on any new debt (even if the salesperson offers you a 20% discount on your purchase).

• Don’t make out-of-the-ordinary large deposits. If you must, be prepared to provide a clear paper trail detailing where the money came from and why.

• Don’t buy big-ticket items on your credit cards or a personal loan!

• Don’t omit or exaggerate information on your application, lenders or credit bureaus will find out and slow/stop the process.

• Don’t make sudden changes in your spending habits (unless it’s to save more) or with your income.