10 Rules to Follow

Whether you have just put in your loan application at the sales office, or if you currently have a contract on a home OR if you are just thinking of buying a home very soon, there are a few guidelines that can help you accomplish your goal of Home Ownership!

1. Do not change jobs or become self-employed or quit your job.  Job stability is key and most lenders are going to verify that you have had the same income for the last two years by looking at your tax returns.
2. Do not buy a car, truck or van (or you may be living in it!) Taking on an increased debt load can count against your buying power.
3. Do not use credit cards excessively or let you current accounts fall behind.  You do need to have a good payment history on all of your debts.  If you increase your balances owed on your credit cards after you have been approved for a loan, you may find that loan has vanished!
4. Do not omit debts or liabilities from your loan application.  We’ll see it anyway and it is better to have a good idea what to expect when submitting your loan application.  It will make a difference as to which lenders and programs we need to consider for you.  We want to help and all information is crucial!
5. Do not spend money that you have set aside for closing.  You need it for closing on your New Home!
6. Do not buy furniture.  Or any other high ticket items.  See number 2 and 3.
7. Do not originate any inquiries into your credit.  That means no new store accounts, book-of-the-month clubs, credit cards or visits to the car lot!
8. Do not make large deposits without checking with your loan officer.  Christmas gift money and cash savings can cause huge problems when deposited into your bank account.  Call your lender for advice first.
9. Do not change bank accounts.  So Bank of Everywhere has made you really mad with their crazy charges?  Suck it up until after you have closed.  Changing banks at the last minute can keep you from closing as bank statements are necessary for underwriters.
10. Do not co-sign for a loan for anyone.  Sorry that Grandma needs a new car.  Someone else needs to help her besides you.  See numbers 6, 2 and 3.

 If you can manage these 10 rules, you might just find that you are a Home Owner sooner than you think!