Homebuyer do's and don'ts

Between preapproval and closing, small decisions can have big consequences. Here is how to keep your loan on track.

The do's

General suggestions, not a substitute for advice on your situation. Ask Melanie about anything you are unsure of.

Get preapproved before you start touring homesSellers and agents take offers seriously when the financing is already vetted.
Set a monthly payment you are comfortable with, not just the maximum you qualify for
Keep paying every bill on timeOne late payment during the process can change your rate or approval.
Gather your documents early and send all pagesEven the blank pages of a bank statement. Underwriters ask for them.
Tell us right away if part of your down payment is a giftGift funds are fine. They just need a short letter and a paper trail.
Keep your earnest money in the account you sourced it fromMove money only after checking with us.
Start shopping for homeowners insurance once you are under contract
Respond quickly when we ask for somethingMost delays come from a single missing item.
Call us before you do anything on the don't listThere is often a way to make it work if we know first.

The don'ts

If any of these feel unavoidable, do not guess. Call us first and we will find the path with the least impact on your loan.

Change jobs, quit, or switch to self-employmentStable, verifiable income is the foundation of the approval.
Buy or lease a car, boat, or anything with a paymentA new payment changes your debt-to-income ratio.
Open new credit cards or lines of creditEven store cards for furniture.
Run up balances or miss a payment
Make large cash deposits that cannot be documentedLenders have to know where money came from.
Move money between accounts without telling usEvery transfer has to be traced.
Close old credit accountsIt can shorten your credit history and lower your score.
Co-sign a loan for anyoneTheir payment counts against you.
Leave debts or obligations off your application
Wire closing funds without calling our office firstWire fraud is real. Confirm every instruction by phone at a number you already know.

Why lenders care about this

Your approval is based on a snapshot of your finances. Until the loan funds, the underwriter is checking that the snapshot still matches.

Credit gets pulled twice

A soft refresh happens shortly before closing. New accounts or balances show up there, even if you never mentioned them.

Employment is re-verified

Your employer gets a call within days of closing. A job change, even a promotion, can reset the review.

Money has to be traceable

Lenders must document the source of every dollar used for the purchase. Unexplained deposits slow things down.

After closing: a few homeowner habits worth starting

Set up your first payment early

Your first payment is usually due the first of the month after a full month has passed. Note the date and the servicer's name.

Watch for servicing transfer letters

Loans are often transferred to a new servicer. You will get a letter from both companies. Anything else claiming to be your lender deserves a second look.