You say you want to buy a house? Here are some do’s and don’ts when applying for a loan …

I get many calls from buyers and friends wanting to know how to stay in good standing when they are getting ready to apply for a mortgage loan.  Here are some basic do’s and don’ts:


  1.  Stay current on all your existing accounts.
  2. Do continue to use your credit card accounts as you normally would.  Don’t raise a red flag by changing your habits.
  3. Talk to your lender if in doubt; he/she will answer your questions easily and you won’t run the risk of losing out on that loan.


  1. Don’t apply for any new credit.
  2. Don’t pay off collections accounts as it may cause a drop in credit score.
  3. Don’t max out your existing credit cards.
  4. Don’t consolidate debt, i.e., moving all debt to one credit card.
  5. Don’t close any credit card accounts.
  6. Don’t co-sign on any other loans or change your name/address/phone – it raises a red flag.
  7. Don’t change any of your investments until after your loan has been secured.
  8. Don’t make any large, unexplained deposits to your accounts.
  9. Don’t make any changes to your employment or income.

I hope this helps.  I know some of it is counter-intuitive, such as paying off collections accounts but nonetheless, this is information that I received from the lender.

Please let me know how I can help you in your next home buying process.  Please give me a call 602-486-3587.





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