Sometimes loan originators and real estate agents forget to tell their buying clients that there are certain things to do and especially NOT to do to ensure their loan process is successful, without any delays.

As a real estate broker, I see self-inflicted problems arise during the loan process that cause delays resulting in missed closing dates, re-scheduling of moving trucks, hotel stays, missed rate lock-in dates, additional fees, etc. When buyers that are trying to get a loan approved do things that hurt the process, is it really their fault, or is it the fault of the loan originator and/or the real estate professional for not providing enough information?

Buyers need to be educated about the DOs and DON’Ts regarding the loan process so I have put together a list of some things to DO and some things to definitely NOT DO.

DO – continue living at your current residence

DO – stay current on all bills and accounts

DO – keep working at your current employer

DO – keep your same insurance company

DO – paying your current mortgage payments

DON’T – make any major purchases (car, boat, RV, motorcycle, etc.)

DON’T – buy any furniture

DON’T – start any home improvement projects requiring financing

DON’T – finance any medical procedures unless there is no alternative

DON’T – join a fitness club

DON’T – apply for any new credit no matter how small the amount

DON’T – open any new credit cards

DON’T – max out or overcharge on any of your existing credit cards

DON’T – change banks or bank accounts

DON’T – open any new cell phone accounts

DON’T – close any credit card accounts

DON’T – transfer any balances from one bank account to another

DON’T – consolidate any credit card accounts from one card to another

DON’T – pay off any loans

DON’T – pay off any credit cards

DON’T – pay off any collections

Some of these items are obvious and some of them are not. If you think you will have to do any of these items, the best thing to do is to contact your loan originator and explain your situation and see what kind of impact it will have on the loan process. He or she may be able to offer guidance or suggestions that would allow you to do some kind of work-around.

There are plenty of things out there that can hurt the loan process. Buyers shooting themselves in the foot because they are unaware of the DOs and DON’Ts is something that can be avoided with properly disseminated information.

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