Do’s and Don’ts for a Purchase Loan

  • Don’t wait until you have 20% down to buy a home. See Mike’s blog post on this.
  • Do pay your bills on time and raise your credit score over 740 and preferably over 780 (if you put less than 20% down) before you buy a home. Having a strong credit score will lower your loan fees, interest rate, and potential private mortgage insurance (PMI)
  • Don’t make any large purchases like a car, recreational vehicle, or timeshare (if you can help it) after we issue you a preapproval letter.
  • Do check in with us if anything has changed with your job, income, assets, or liabilities after we issue you a preapproval letter.
  • Don’t plan a vacation toward the end of your escrow period if you can help it, we’ll need you to sign in person with a notary before we can close and you may need to wire funds to close.
  • Do put a priority on sending us documents as soon as possible. Delays can cause rate lock extension fees and unnecessary stress on all parties in the transaction. Buying a home is stressful enough!
  • Don’t add an earthquake policy before closing if your debt to income ratios are high. (you can add this after closing)
  • Do shop for a homeowner’s insurance policy once you are in contract to buy a home.
  • Don’t purposely hide information regarding assets, income or liabilities. We would rather know what we are dealing with upfront than have it pop up at the end of the process.
  • Do tell us if you plan on receiving gift funds for your down payment.
  • Don’t move money around without telling your loan officer first. This may cause the underwriter to require more documentation which would have otherwise not been required.
  • Do tell us amounts and accounts/sources you plan on using for your earnest money deposits and funds needed to close.
Hands and Heart Icon

We Are Here to Help You

Even if we are not your best choice for a loan, we’ll point
you in the right direction.
Get Your Free, No-Pressure Rate Quote Here Arrows Icon