Do’s & Don’ts: Advice for First Time Home Buyers

The mortgage process may have a lot of moving pieces, but most of the time those pieces move along in perfect harmony to provide you with a seamless, stress-free mortgage experience. As long as you follow some of these key pieces of advice for first time home buyers, the process will be easier than you may have thought.  

Key Advice for First Time Home Buyers

Before we get into the do’s and don’ts of applying for a mortgage, it’s important to point out that the number one piece of advice for first time home buyers is to talk to a mortgage banker early in the process. 

Whether you’re casually looking at online listings, venturing into internet research on affordability and loans, or are at the point of calling up a real estate agent to start the process, talking to a mortgage banker should happen before anything else. Your mortgage banker can help you plan for how much you need to save, go over your affordable price ranges with you, and catch things on your credit report that may need to be addressed before applying for a loan. It’s never too early to talk to a mortgage banker.  

Do’s and Don’ts of Applying for a Mortgage

Once you’ve talked to a mortgage banker, received a pre-approval, and found a home, it’s time to apply for a mortgage. Following these simple rules will ensure you get to the closing table without a hitch.

Do 

The long and short of loan application “do’s” is that borrowers need to keep careful track of their money. Where it’s documented, where it comes from, and what goes out.  

• DO keep all records of financial activities readily available (paystubs, bank statements, etc.)
• DO let your lender know if you will be receiving a financial gift for this transaction
• DO pay all of your bills on time (by due date or earlier)

Don’t

If “do’s” pertain to keeping track of your money, “don’ts” have to do with changing where your money goes. How it’s being allocated, what the source of income is, and where it’s kept. 

• DON’T take on any new debt (cars, furniture, etc.) or have additional inquiries on your credit report
• DON’T change your job without discussing the impact on your approval first
• DON’T make large deposits to your bank accounts that cannot be documented
• DON’T change bank accounts or move money excessively from one account to another

DO: Communicate

To put these bullet points in one sentence, our advice for first time home buyers is to ask your mortgage banker before taking any action that has to do with large amounts of money. Not only do you want to talk to a mortgage banker early in the process but also often throughout it.  If you’re thinking about buying a home, reach out for more advice!