Home Buying Rules
Asset Rules:
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Do not spend the money you have set aside for closing
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Do not make any large deposits of cash or deposits that you can not source
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Do not change bank accounts
Credit Rules:
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Do not buy a new car
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Do not dispute any tradelines
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Do not co-sign for a loan
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Do not max out your credit cards
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Do not pay off collections that are older than two years
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Do not close any accounts
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Leave your balances at $10
Employment Rules:
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Need to have two years of employment, unless you are a recent graduate
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Self-employed -- need two years
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No job gaps greater than six months
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If you need to get a new job during the loan process, you need to get one pay stub
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Try not to go from W2 to 1099/Self-employed within two years of wanting to buy a house
Income Rules:
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Child support/alimony -- needs to continue for three years past loan closing
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Bonus income -- need a two-year history
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Overtime -- need a two-year history
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Part-time job -- need to have it for two years for it to be qualifying income
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Retirement -- need to show it will continue for three years
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Seasonal income -- need a two-year history
Earnest Money Sources:
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Checking or savings accounts
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Retirements funds, i.e. 401ks, IRAs
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Gift funds from family members
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Sale of personal property
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Down Payment Assistance Programs
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DO NOT USE CASH
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DO NOT BORROW MONEY FROM CREDIT CARDS