Do’s and Don’ts When Buying a Home
by Paul Vattiat

In my previous experience as Mortgage Operations Manager, I saw hundreds of loan files each month. Regularly there were a few that were Denied due to the borrower taking an action that they did not realize would cause dire consequences. I always felt terrible calling these folks and delivering the bad news; the worst part is that in most cases it was 100% preventable.

Here’s the key point: Your pre-approval is based on a snapshot in time of your financial picture. Your goal during this process, is to keep everything as close as possible to this so when the Underwriter reviews your file everything will still be valid. The best advice I can offer is to reach out to your loan officer in advance for guidance with any situations that fall outside of what’s “standard” for you; specifically, any changes to your income/employment, credit usage, or banking habits.

Here’s a Top 10 DO’s and DON’Ts based on the most common missteps I’ve seen; unfortunately, there is a story behind each one of these.

1. DO continue paying bills on time
2. DON’T open any new credit accounts or new bank accounts
3. DO try to save money
4. DON’T leave or change employment
5. DO continue to work full time hours
6. DON’T reduce hours or take a leave of absence
7. DO liquidate and consolidate funds for closing
8. DON’T deposit any cash or large unsourced deposits
9. DO save the entire paper trail from deposits/transfers
10. DO contact your Loan Officer for guidance on any upcoming changes in your financials.

For professional guidance, please click the button below.