Dos and Don'ts Before Purchasing a House

Buying a home is a major milestone, and preparation is key to making the process smooth and successful. As a mortgage broker, I've seen firsthand how small decisions can greatly impact your ability to secure financing and close the deal. Here are some essential dos and don'ts to consider before purchasing a house:

Dos:

1. Check Your Credit Score Early. A good credit score can help you qualify for better mortgage rates. Review your credit report for any errors and take steps to improve your score if needed.
   

2. Get Pre-Approved. Pre-approval gives you a clear idea of your budget and shows sellers you’re a serious buyer. It also helps you move quickly in a competitive market.
   

3. Stay Within Your Budget. Just because you're approved for a certain amount doesn’t mean you should spend it all. Factor in property taxes, insurance, maintenance, and unexpected costs.
   

4. Keep Financial Documents Organized. Lenders will ask for pay stubs, bank statements, tax returns, and more. Having everything ready can help speed up the approval process.
   

5. Ask Questions. Don’t hesitate to ask your mortgage broker about different loan types, interest rates, and what to expect at each stage. Knowledge is power.

   
   

Don’ts:

1. Don’t Open New Credit Accounts. Applying for new credit cards, car loans, or financing furniture before closing can negatively affect your credit score and mortgage approval.
   

2. Don’t Make Large Deposits Without Explanation. Lenders need to track the source of your funds. Large, undocumented deposits can raise red flags and delay your loan process.
   

3. Don’t Change Jobs Abruptly. A sudden change in employment, especially to a different field or as a contractor, can make lenders question your income stability.
   

4. Don’t Skip the Pre-Approval Process. Searching for homes without knowing what you can afford can lead to disappointment and wasted time.
   

5. Don’t Ignore Additional Costs. Beyond the sale price, remember to budget for closing costs, inspections, moving expenses, and future home repairs.