Home Buyers Guide: Do’s and Don’ts

Having been in this business for over two decades, I have seen it all. No matter how experienced, even the most seasoned home buyers can use a refresher on the home buying process. Besides, it’s my passion to help you manage what could possibly be one of the largest financial decisions you will make in your lifetime. I often receive feedback about how my knowledge pays off in a great home-buying experience.

You can use this home buyer’s guide with a practical checklist of do’s and don’ts to prepare for the process that happens beyond the application and approval. 

The Do List

• DO notify us if your salary or other compensation changes from what is noted on your loan application.
• DO inform us if your address changes from what appears on your original loan application.
• DO obtain homeowner’s insurance with minimum coverage equal to the amount of your total loan or the replacement value of the house.
• DO keep documentation (“paper trail”) on any large deposits into your account: copies of all paperwork necessary to prove a financial transaction, including all checks, deposit slips, loan paperwork, forms to liquidate assets, etc.
• DO notify us if you move funds from one account to another. Provide a “paper trail” on all transactions.
• DO bring a cashier’s check made out to the title company for your closing costs.

The Don’t List

• DON’T acquire any additional credit lines or make any large purchases on existing credit without first consulting us. Buying a car or buying appliances for your new home will change your debt-to-income ratios.
• DON’T change jobs without consulting us. A change in compensation may affect your ability to qualify. Lenders may verify employment on the day of closing as a quality control check.
• DON’T co-sign with anyone to obtain a line of credit or make a purchase. It will show up on your credit report as an additional debt.
• DON’T negotiate your contract with an allowance and expect to get your money back at closing. For example, a borrower may use an allowance to pay closing costs and/or discount points.

I am happy to provide a free consultation to help you in your home financing solution, contact me now to get started or apply for your home loan here. Also, feel free to browse my other helpful FAQs or bookmark my blog for ongoing free advice to help you with the best home buyers experience possible.