Purchasing a home for the first time can be one of the most exciting and important decisions you will make. Making a mistake in the process can be devastating. However, most first-time home buyer mistakes are easily avoidable with some guidance from a professional. Here are a few do’s and don’ts to help you prepare.


Focus on the DO’s of the loan process.

  • Always be responsive to providing documentation requested from your lender.
  • Provide your EMD (earnest money deposit) from you own funds or acceptable gift funds.
  • Watch your credit score through a credit monitoring company.
  • Notify your Mortgage Loan Originator of where your assets for closing will be derived.
  • Save as much money as possible for any unknown expenses that may arise.
  • Make all your credit cards and installment debt payments on time.
  • Communicate any positive or negative changes in your employment status or income.
  • Discuss with your Mortgage Loan Originator how someone providing gift funds to you will be transferring the money.


Now let’s focus on the DON’Ts of the loan process.

  • You shouldn’t do anything that will have an adverse effect on your loan.
  • Don’t open up any new loans, credit cards, cars or other debts until you go to settlement.
  • Don’t change jobs or employment without consulting with your Mortgage Loan Originator first.
  • Don’t deposit any cash into your account unless it is the exact amount that can be verified by a recent pay check.
  • Don’t borrow any money from any person or company.
  • Don’t transfer funds from different accounts before first discussing where the monies are coming from with your Mortgage Loan Originator.
  • Don’t take any leave of absence or unpaid time off which could affect your qualifying income.
  • Don’t spend the monies you are using for your down payment and closing cost.