Do's

  1. Do make all loan and other debt payments on time, especially in

  the year leading up to your mortgage application. It sounds simple,

  but every 30-, 60-, or 90-day delinquency on a loan or credit card

  is going to reduce the credit score the lender ends up considering

  as part of the loan file, as well as cause them to wonder if you’ll be

  late with them as well.

  2. Increase the size of the down payment you're able to make by

  saving as much as possible, as often as possible. Don't put the

  savings into something volatile, such as an individual stock. But

  evaluate money market or other accounts that offer reasonable

  rates of return, automatic payroll deductions or other financial

  incentives to save.

  3. Know what you can afford.  Calculate in the less visible costs

  of home ownership: maintenance, repair reserves, the possibility

  of a 100-year-old furnace, etc.   Make certain that you can afford

  all of these and still live comfortably: there’s no sense getting into

  a home if you’re miserably broke once you’ve done it.  Nor is

  there any sense in getting into a home only to have an emergency

  expense cause you to default on your mortgage, effectively ruining

  your chance for another mortgage for years to come. 

  1 Year | 6 Months | 3 Months | 1 Week | Do's | Don't's | 10 Questions