New Home Buyer Do’s and Don’ts

Posted on by Lisa Barton to Buying Tips

When buyers find their dream home they get both excited and overwhelmed by the buying process. Whether you are a First Time Home Buyer or an experienced executive there are a few important things to keep in mind when purchasing your new home:


  • Create a long-term budget. It doesn’t matter if you are buying a $100,000 starter home or a $1,000,000 beachfront property – know your limits and financial obligations before you engage in the buying process. Talk to a Mortgage Broker to get  pre-approved. Talk to your Financial Advisor to set goals and make sure you are making the right investment before you jump in.
  • Be sure you have already saved your earnest money or down payment and have it in your bank account. You can’t pull it out of a sock!! If it is going to be a gift from someone you lender will need to know in advance. 
  • Get all your assets in the one place. Once you get approved for a mortgage and have a contract in place it is not the time to move monies around in accounts, make large unexplained deposits or move around stocks or investment dollars.  Get things lined up before you begin the process. 
  • Once you have a contract in place go “credit quiet”. Our mortgage expert says that means that things go in a hold position. Do not incur any new credit. Period.


  • It is easy to get excited and want to go crazy getting ready for the new house – resist the urge to Buy! Buy! Buy! Do not order new furniture and create a credit account at a furniture store. Do not order custom blinds and drapes and open a credit card before closing. These are all important details to remember because they can affect your ability to borrow for the mortgage and receive the final approval that you need for closing day.
  • DON’T QUIT YOUR JOB!!! Might sound silly but it is imperative to stay in the current position you were when you were approved. If you make an application for a mortgage, and use supporting income from your existing employment, you will need to be actively employed in the position on the day of closing. Some mortgage companies will even verify employment shortly before closing. 
  • Don’t go buy a new vehicle! If you go finance that new truck or luxury vehicle between the signing of the contract and closing day it could have serious consequences on your borrowing capabilities. You can pick your new vehicle out but don’t arrange finance until after your close. Leave the car in the show room until then!
  • Don’t apply for new credit cards! No retail store cards, no Visa, no Mastercard, no Discovery….you get the picture?  See above Dos – go “credit quiet”.

If you follow these few simple guidelines it will help your buying process and loan approval process go smoothly and you will be in your new home before you know it!

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