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  • Writer's pictureMonument Mortgage Co.

Common Do's and Don'ts when Purchasing a Home

Are you in the process of buying a new home or getting ready to start looking for your dream home? Here are a few general things to keep in mind as prepare for your big move.



• Do pay all your credit cards and any other debt on time before you even start considering a mortgage.

• Do keep a positive balance in all of your checking and savings accounts with sufficient funds to close a loan.

• Do keep your money right where it is. Changing banks or moving money will require explanation, which will just be more paperwork for you and your lender.

• Do provide any documentation your loan originator asks for in a timely manner. It may seem like you are handing over quite a bit of information, keep in mind that you are asking the lender to trust you with hundreds of thousands of dollars.

• Do factor in your lifestyle. A lender will give you a range that includes the top end of how much home you can afford. That number is based on your current expenses, not the future.


• Don’t buy a vehicle. Even if you are paying cash.

• Don’t quit your job. If there are any changes to your employment or income, please contact your loan officer right away.

• Don’t take on any new debt (even if the salesperson Offer you a 20% discount on your purchase). Inquiries into your credit could impact your score and new debt may impact your qualifications.

• Don’t make out-of-the-ordinary large deposits. If you must, be prepared to provide a clear paper trail detailing where the money came from and why. Large deposits are fine, as long as you can source the deposits

• Don’t buy big-ticket items on your credit cards. Again, any large purchases may impact you qualifying for the mortgage.

• Don’t omit information on your application. If you are unsure if the information is pertinent to the process, always best to discuss with your loan officer.

• Don’t make sudden changes in your spending habits (unless it’s to save more) or with your income. Any major changes to your financial situations should be discussed with your loan officer.

For more information, contact a loan officer today!

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