Mortgage Wisdom: Key Do’s and Don’ts for Homebuyers

Reading Time: 4 minutes

Purchasing a home is an exciting milestone, but it often involves securing a mortgage loan. The mortgage loan process can seem daunting, with numerous steps and requirements. To ensure a smooth journey towards homeownership, it’s essential to be aware of the do’s and don’ts.

These tips should be followed all the way to the closing. Your lender will pull your credit report within a couple of dates (or even hours) before closing to ensure nothing has changed in your financial situation. You’ll also be asked to sign a document affirming that nothing has changed.


  1. Do review your credit report: Before starting the mortgage loan process, obtain a copy of your credit report and review it for any errors or discrepancies. Rectifying mistakes can help improve your credit score and increase your chances of getting favorable loan terms.
  2. Do maintain a stable financial situation: Lenders assess your financial stability to gauge your ability to repay the loan. Maintaining stable employment and avoiding large purchases or taking on additional debt during this period is advisable. Consistency in your financial situation demonstrates reliability to lenders. Continue to make all your payments. Stay current on every single bill and avoid adding yourself as a co-signer on another loan and moving money between accounts.
  3. Do get pre-approved: Prior to house hunting, get pre-approved for a mortgage. Pre-approval not only helps you determine a realistic budget but also makes you a more attractive buyer to sellers. It streamlines the process and allows you to act swiftly when you find the right property.
  4. Do provide accurate documentation: Lenders require a variety of documents to evaluate your financial standing, such as tax returns, bank statements, pay stubs, and employment verification. Ensure you provide accurate and up-to-date documentation promptly to avoid delays in the loan approval process. Hang onto every deposit slip, check stub, refund check, bank statement. etc.
  5. Do communicate openly with your lender and real estate agent: Establish open lines of communication with everyone involved throughout the process. Seek clarification on any aspects you don’t understand and promptly respond to requests for additional information. Inform your agent of any changes in your situation, even if you think it’s not important. Clear communication helps maintain a smooth and efficient mortgage loan process.
  6. Do save for a down payment: Saving for a down payment is crucial, as it affects the loan amount, interest rate, and mortgage insurance requirements. Plan and save for a down payment in advance to ensure you have sufficient funds when needed.


  1. Don’t make major financial changes: Avoid making significant financial changes during the mortgage loan process. This includes switching jobs, making large purchases, or taking on new debts. Such actions can negatively impact your creditworthiness and jeopardize the loan approval process.
  2. Don’t give out your social security number: Giving access to your credit report to someone who doesn’t need it can lower your credit score and lead to a higher interest rate or a denial of your loan.
  3. Don’t overlook your budget: Determine a realistic budget and stick to it. Remember to account for not only the mortgage payment but also other homeownership expenses like property taxes, insurance, and maintenance. Overextending your budget can lead to financial stress and potential difficulties in repaying the loan.
  4. Don’t apply for new credit: Applying for new credit, such as credit cards or auto loans, can negatively affect your credit score and raise red flags for lenders. Avoid any new credit applications until after your mortgage loan has been approved and finalized.
  5. Don’t neglect your existing debts: Prioritize paying off existing debts or at least keeping them under control. High levels of debt can affect your debt-to-income ratio, which is a critical factor in mortgage loan approval. Maintaining a healthy debt-to-income ratio improves your chances of securing a loan with favorable terms.
  6. Don’t ignore professional advice: Seeking guidance from a mortgage professional is essential, especially if you’re a first-time homebuyer. Mortgage professionals can provide valuable insights and help you navigate the complex loan process. Don’t hesitate to ask questions or request clarification when needed.
  7. Don’t miss deadlines: Meeting deadlines is crucial during the mortgage loan process. Failing to submit requested documents or meet important milestones can lead to delays or even the cancellation

For all of the latest information on our local real estate market in Southwestern Indiana and Northwestern Kentucky, you can always trust the professionals at F.C. Tucker Emge and F.C. Tucker/Collier. Our agents have superior training and resources at their disposal to better educate you about the road to homeownership. Even if you are 6-12 months (or more!) out from making a change, there is a lot to learn about the home buying and selling process, and our agents can help you learn what you need to know so that you can be confident in your decision and have a smooth experience when the time comes. Let’s Talk!