Do’s & Don’ts of Buying

Things to do and not to do when preparing for a mortgage! When in doubt, please
call me.
Buying a home is a long process – sometimes taking months. Once you complete the
application and begin the mortgage process, it’s important to keep your finances as
similar as possible until closing. While you’re waiting to close on your new home, follow
this advice to limit any bumps in the road.
DON’T
1. Don’t change employers, quit your job, or become self-employed.
2. Don’t take on additional long-term debt, such as buying a car or furniture for your
new home. Additional financing will increase your debt-to-income ratio.
3. Don’t increase your use of credit cards or fall behind on any payments.
4. Don’t change financial institutions. You want to show stable banking history.
5. Don’t drain your savings or investment accounts.
6. Don’t make large deposits into your accounts. Money for your down-paymentopens in a new
windo w should be in your account for at least two months.
7. Don’t neglect any debts or liabilities or misrepresent your income on your loan
application.
8. Don’t apply for new credit or open new lines of credit, including new credit cards
as this will impact your credit score.
9. Don’t close any credit card or account tradelines as this will impact your credit
score.
10. Don’t co-sign a loan for anyone during this time.
DO:
1. Do plan your future. Focus on saving—not spending— your money.
2. Do maintain a paper trail of anything related to buying your home i.e., cash
deposits, gift funds, retirement accounts…keep good records.
3. Do ask questions…call or text me anytime…252-289-5535 or email
bbarnes@ihmcloans.com
In general, don’t do anything that will have a significant impact on your finances without
first consulting me.
When you’re going through the mortgage process, it’s important to keep your finances
steady. Any changes – good or bad – can extend the mortgage timeline and possibly
keep you from getting your dream home.