Buying a home is one of the biggest financial decisions you will ever make. In order to have a smooth home buying process, 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

Don’ts:

• 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

As you take on the process of becoming a homeowner, refer to this list to ensure for a smooth and successful closing! Reach out to our team today for any questions and assistance with your mortgage!

*This material has not been reviewed, approved or issued by HUD, FHA or any government agency. The company is not affiliated with or acting on behalf of or at the direction of HUD/FHA or any other government agency.

This information is provided for convenience only, and Family First Funding LLC and its affiliates (“FFF”) make no warranties concerning the accuracy or completeness of any of the information. Information is subject to change without notice, and FFF is under no obligation to provide updated information. This is not financial, tax, compliance or legal advice and should not be taken or relied upon as such. Each individual should consult with his/her financial, tax, compliance or legal professional. Mention of product, process or service shall not be construed as an endorsement or recommendation by FFF.