HOME BUYING RULES

Asset Rules:

  • Do not spend the money you have set aside for closing

  • Do not make any large deposits of cash or deposits that you can not source

  • Do not change bank accounts

Credit Rules:

  • Do not buy a new car

  • Do not dispute any tradelines

  • Do not co-sign for a loan

  • Do not max out your credit cards

  • Do not pay off collections that are older than two years

  • Do not close any accounts

  • Leave your balances at $10

Employment Rules:

  • Need to have two years of employment, unless you are a recent graduate

  • Self-employed -- need two years 

  • No job gaps greater than six months

  • If you need to get a new job during the loan process, you need to get one pay stub

  • Try not to go from W2 to 1099/Self-employed within two years of wanting to buy a house

Income Rules:

  • Child support/alimony -- needs to continue for three years past loan closing

  • Bonus income -- need a two-year history

  • Overtime -- need a two-year history

  • Part-time job -- need to have it for two years for it to be qualifying income

  • Retirement -- need to show it will continue for three years 

  • Seasonal income -- need a two-year history

Earnest Money Sources:

  • Checking or savings accounts

  • Retirements funds, i.e. 401ks, IRAs

  • Gift funds from family members

  • Sale of personal property

  • Down Payment Assistance Programs

  • DO NOT USE CASH

  • DO NOT BORROW MONEY FROM CREDIT CARDS