· Your credit report should have 5 OPEN lines of credit with 2 year history with available credit of
at least 2000.00 per line. (3-4 is also okay but 5 is preferred)
· Never go over 50% of your “AVAILABLE CREDIT” on any one given credit card- this will pull
on your credit scores.
· Always pay your payments on time- 30 day late will cause your credit to decrease greatly.
· When you buy a home there are NON RECURRING and RECURRING Closing costs –have around 7K saved
up for these and reserves.
· Keep your taxes, pay-stubs and W2’s, all bank statements and all stocks, bonds and IRA statements
in file folders we will need later.
· If you are getting any gift money from relatives get in your bank account ASAP and get it seasoned
for 2 months before you purchase. It is easier and less documentation.
· You will need at least 2 months PITI ( Principal, Interest, Taxes and insurance) in reserve after you
close to show the lender at the close of escrow- Above and beyond the Closing
cost money
· Do Not have anyone pull your credit- do not apply for new credit cards during the process and do not
co-sign for anyone before or during the home buying process.
· Employment for 2 years is preferred in the same line of work- ( you can have multiple jobs as long
as they are related)
· If you are W-2 and switching to self –Employed anytime soon buy first—you have to prove
a 2 year history of self employment when you switch from W-2 to Self Employed.
· Do not go out and buy a car or add any debt during the process.
· Do not consolidate credit cards onto a lower interest rate card- they pull your credit and drop your
score.
· Lender base everything on risk factors- the lower the risk factors the better rates and programs available
to you- so good credit, good employment, reserves in the bank are very important.
· If you are thinking about purchasing within the next few months or years it is best to contact me to
review your individual variables and to make sure we set you up to get the best possible rate on your Home Loan!
