Top 5 Things, "Not to do", when purchasing your first home!

1. Don’t buy a lot of stuff! You want to be able to qualify for that loan and get the best possible interest rate. Too much debt to income ratio looks bad, so avoid spending money on that big ticket item until after your closing. Your lender will check ALL of your accounts prior to closing, so stay very conservative.

2. Don’t’ change jobs! Unless you’re relocating for a new position, stability on your job is a good thing. Lenders like to see a steady stream of income, at least (2 years of W2’s).

3. Don’t ruin your credit and or clean up your credit! When you obtain your pre approval from a respectable lender, your lender will pull your credit and advise you as to what’s the best option for you. It’s important not to have too few or too many open credit accounts, and the best credit is old credit. Seek professional advice!

4. Don’t spring clean your documents! Organize your important papers such as W-2s, 1099 income statements, recent ay stubs and tax returns for the past couple of years. Lenders may request these documents and knowing where to find them may speed up your loan approval process.

5. Don’t deplete your entire bank account! It’s not a wise thing to try and pay off all your credit card bills, only to have a “0” balance. Remember, you will still have to consider closing costs, down payment, pre-pays, and living expenses. Consult a professional for advice on the most important bills to pay. Remember, the goal is to have the best portfolio when you research interest rates.