Local Buying Tips

  1. Pay all of your bills on time.
  2. Use a personal check to pay earnest money. If your purchase agreement includes earnest money, use a personal check from your own checking account to pay it, and maintain copies of the check.
  3. Do not change jobs. Your employment will be verified twice while your loan is in processing. Any job transfers or changes in your employment will raise questions in underwriting. Even if you’re offered a higher paid position in your established job field, talk to your loan officer before officially making the switch.
  4. Avoid opening new credit accounts. Don’t buy a bunch of furniture before your loan closes, or a car, a boat, or anything else that could hurt your credit score or affect your finances. Big changes to your credit or debt can turn your loan approval upside down. Even if they don’t they’ll trigger additional documentation and possibly delay your closing.
  5. Don’t close or overuse your existing credit accounts. Big purchases could increase your monthly minimum payments and affect your loan approval. Closing an account with an excellent payment history could actually cause a temporary dip in your credit score.
  6. Keep your bank accounts in good standing. Maintain your reserves, keep your balances positive, and avoid transfers and large non-payroll deposits. If you plan on receiving a monetary gift from a family member, contact your loan officer to find out what documents you’ll need to provide.
  7. Make sure you’re financially prepared for the upfront costs of home-buying. An earnest money deposit, an inspection, and an appraisal all need to be paid upfront.
  8. Don’t pack important documents like pay-stubs, bank statements, and any other documents that might be needed to update your loan file.
  9. File your taxes. Lenders must receive tax transcripts directly from the IRS in order to close on your home loan.