The Do’s and Don’ts of Financing your Dream Home

Posted: August, 1, 2018 | Categories: Finance

When it comes to starting off on the right foot for a home loan here are some important do’s and don’ts to consider before kicking off the mortgage process.


  • Save for a Down Payment. Among the most important things to do is to save up money for a down payment rather than using a line of credit or cash advances from your credit.
  • Review your Credit Score. Know where you stand so that you can represent yourself as financially sound.
  • Stick to a Budget. Besides your mortgage payment, you’ll have other expenses like homeowners insurance, property taxes and maintenance costs.  These expenses have a way of adding up, so make sure you can adhere to a realistic budget. 
  • Get Your Paperwork in Order. Make sure all deposits into your account are appropriately documented and sourced, as lenders like to see an accurate representation of your money flow.
  • Pay Bills Timely. Be sure to pay all your current payments on time and with consistency. And have all your papers in order, including copies of bills of sale and certified checks for the sale of personal property, such as a car.
  • Proactively Communicate. Finally, good communication is important. Be prepared to keep lenders informed if something arises during the home-buying process that may change your credit profile.


  • Deplete your Savings Account.  Be careful to not deplete your savings account in order to fund your down payment or closing costs. A useful rule of thumb is to stockpile three to six months of living expenses to cover emergencies.
  • Open or Establish new Lines of Credit. It is important to refrain from opening up new credit cards or co-signing for a loan for someone else as it may appear you are over-extended.
  • Fall Behind on Payments. Make sure your current payments are on time, don’t fall behind.
  • Make Major Purchases. Avoid buying a car or a houseful of new furniture. Acquiring new debt could jeopardize your loan approval.

Follow these simple steps and your new home is just right around the corner!

Have questions?  Contact our loan specialists at McCaffrey Home Mortgage who can help you secure the home of your dreams.  Just give us a call at (559) 256-7050.