House Rules: 10 Rules You Should Follow When Buying a Home

It's crucial to navigate the homebuying process with a clear understanding of the do's and the don'ts. Here are 10 things you absolutely should not do when venturing into the world of buying a home.

1. Don’t change jobs, become self-employed, or quit your job.

It's not a good time to switch careers or dive into the self-employed world. Lenders love a stable job history, so let's keep the paycheck flow steady for that dream home.

2. Don’t buy a car, truck, or van (or you may be living in it!)

We get it, a new car is tempting, but let's not turn our mortgage into a car payment. Keeping the spending in check now means you won't be living in your new ride instead of your new house.

3. Don’t use credit cards excessively or let current accounts fall behind.

Swipe responsibly and keep your current accounts in check! This will prove you have financial discipline, positively influencing your credit score and mortgage terms.

4. Don’t spend money you have set aside for closing.

Consider your closing funds untouchable and avoid the temptation to dip into it– your future homeowner self will thank you.

5. Don’t omit debts or liabilities from your loan application.

Full transparency is the name of the game, and accurately representing your financial standing helps lenders accurately assess your eligibility for a mortgage.

6. Don’t buy furniture on credit.

Hold off on that credit card spree at the furniture store. After your mortgage is secured, you can deck out your new place.

7. Don’t originate any inquiries into your credit.

Too many credit inquiries can mess with your credit score, and we want that score looking sharp for the best mortgage terms.

8. Don’t make large deposits without checking with your loan officer.

Before you make a big deposit, give your loan officer a heads up. This helps maintain transparency and avoids potential complications during the underwriting process.

9. Don’t change bank accounts.

Changing banks? Not now. Consistency is key for lenders, so keep the same banking situation throughout the mortgage process.

10. Don’t co-sign a loan for anyone.

Thinking of co-signing for a friend? Hold up! This is a solo mission to homeownership, and co-signing could throw some unexpected hurdles our way.

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Following these rules can make all the difference. Consult with one of our mortgage experts for advice to make sure your financial decisions align with your homeownership aspirations.

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