Things to Avoid

1. Don’t Affect Your Credit – Maintaining stable finances is crucial when preparing to buy a new home. Avoid making any significant purchases, including those on credit cards, unless you’ve discussed them with your lender. Major expenditures can negatively impact your credit score and debt-to-income ratio, potentially jeopardizing your loan approval.

2. Don’t Drain Your Bank Account – Keep your bank account stable. Avoid large withdrawals or depleting your savings, as lenders want to see that you have sufficient reserves to cover the down payment, closing costs, and any unforeseen expenses.

3. Don’t Change Jobs – Even if you’re offered a better or higher-paying job, changing employment during the homebuying process can raise red flags for lenders. Stability in employment is a key factor in securing a mortgage. Discuss any potential job changes with your lender before making a decision.

4. Don’t Make Unusual Large Bank Deposits – Large, out-of-the-ordinary bank deposits can be seen as red flags by lenders. These deposits may require explanation and documentation, complicating the approval process. Ensure your financial activity remains consistent and transparent.

Things to Do

1. Do Keep Paying All of Your Normal Bills – Continue paying all your regular bills on time. Consistency in managing your financial obligations reflects positively on your credit report and reassures lenders of your reliability.

2. Do Make Regular Purchases – It’s perfectly fine to make everyday purchases, such as groceries. You don’t need to make drastic changes to your usual spending habits. Just avoid major purchases that could impact your credit profile.

3. Do Ensure Commitment to the Property – The home inspection period is your opportunity to thoroughly assess the property and ensure there are no deal-breaking issues. If you have any doubts or concerns, now is the time to address them. Make sure all your questions about the property and the transaction are answered before moving forward.

4. Do Communicate with Your Lender – Keep an open line of communication with your lender throughout the process. Discuss any financial changes, potential job transitions, or significant purchases with them to understand how these decisions may impact your loan approval.