If you are in the market for a new home, you probably already know that getting a new mortgage for a First-Time Home Buyer can be a little overwhelming with all of the important details, guidelines and potential speed bumps.
Yes, we know that there are plenty of rules to follow — but here is a simple list of “Do’s” and “Don’ts” to follow when shopping for a mortgage for the first time. Keeping these in mind can super-simplify the process:
DO:
- Continue working at your current job
- Stay current on all your accounts
- Keep making your house or rent payments
- Keep your insurance payments current
- Continue to maintain your credit as usual
- Call us if you have any questions
DON’T
- Make any major purchases (Car, Boat, Jet Ski, Home Theater…)
- Apply for new credit
- Open new credit cards
- Transfer any balances from one credit or bank acct to another
- Pay off any charge-off accts or collections
- Take out furniture loans
- Close any credit cards
- Max out your credit cards
- Consolidate credit debt
Basically, while you are in the process of getting a new mortgage, keep your financial status as stable as possible until the loan is funded and recorded.
Any number of minor changes could easily raise a red flag or cause a negative impact on a credit score that may result in a denied loan.
Most importantly, check with your loan officer on even the simplest questions to make sure your loan approval is successful.