New American Funding Blog

Do’s and Don’ts for New Homebuyers

By Britany   |  October 3, 2012

Couple looking at new house

Planning on purchasing a house sometime in the near future? Here are some helpful tips on what you should and shouldn’t do before buying a home.

Tip 1: Make sure you keep all important documentation such as pay stubs, W-2s, tax returns, bank statements, etc. that will be needed to buy your new home. It doesn’t hurt to make copies of these important documents and keep them safely filed away. Try to avoid making large deposits in your bank account, and if you have to, make sure you document where the money came from so that you can explain to your loan officer when they start asking about your income, debt, and assets.

Tip 2: Try to strengthen your credit score. Don’t apply for new credit or give your personal info to anyone else who might run your credit when the loan is still in process. Credit inquiries can hurt your score and will have to be explained to the underwriter. It’s best to avoid new credit until your loan is approved and funded. Also try to avoid making large purchases, such as a car or boat, on your existing credit cards as this new debt may affect your ability to qualify for the loan.  

Tip 3: Save up for a down payment. If you plan to pay cash for your down payment, make sure it’s not in a safe or in an overseas account. The money must be in a U.S. bank account, so try to take care of this before the time of payment. If your down payment is a gift, have the donor give you the money as soon as they can. Don’t forget to follow all the necessary steps and documentation for the gift. It wouldn’t hurt to build a healthy savings account so you don’t have to worry.

Tip 4: If you are thinking about changing jobs, make sure you do so before you apply for a loan, or wait until your loan has been funded. Your loan cannot be funded unless you are working for the company that your lender has verified. This can hurt the chances of your loan going through so it is best to just wait it out.


  • Keep copies of important documents
  • Wait to make big purchases
  • Strengthen your credit score
  • Follow all steps for accepting a down payment gift


  • Change jobs
  • Apply for new credit or give personal info to places who check credit
  • Make new major purchases
  • Keep cash in a safe or overseas account
  • Make large deposits in your bank account without documentation

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