What I Wish I’d Known Before Buying a House

Set Up for Success Before You Begin

Before I started the process, I researched meticulously — or I tried to, at least. I looked into traditional and Federal Housing Authority (FHA)–backed mortgages, finding out the down payment amount and minimum credit score we’d need for each program.
I made sure my credit scores were above 620, the minimum for the FHA program that I hoped to use. I paid down credit cards in order to make our debt-to-income ratio more appealing to lenders. As soon as I met the minimum requirements, I made an appointment with the bank — and we were sorely disappointed.
First, we learned that many individual banks have their own requirements on top of the regulations that the FHA put in place. In my case, the federal program required a score of 580, but the bank and mortgage agency that we spoke with required minimum scores of 600 and 620, which can be a significant difference when you’re working hard to repair credit.
I also learned that underwriters want to see that your deposit and closing costs have been in your account for at least two months, to track where the funds have come from and to confirm your ongoing financial stability. This was a hindrance to an impatient buyer like me.