5 things you shouldn’t do during the loan process

by | Sep 20, 2018

Buying a home, especially for a first-timer, can be both an exciting and anxiety-inducing process – but it doesn’t have to be.

Mistakes are avoidable. And working with the right team helps prevent them.

As you prepare to embark on your path to homeownership, we’ve compiled a list of five things you should avoid during the loan process.

Start with Home Shopping

Refrain from doing house shopping if you haven’t yet been preapproved for a loan.

We get it. One of the most enjoyable steps of buying a home is shopping and touring different homes that fit your tastes. Spending time finding a home, however, can end up being a time waster. Financing details such as how you much qualify for and the amount of time it takes to get qualified are some considerations to keep in mind.

You’ll want to go home shopping with as much information as possible. Getting preapproved will also make you a more desirable buyer – one who’s prepared and able to make an immediate offer.

Open or Close Credit Lines

Generally speaking, paying down your debt is a good thing, but suddenly closing accounts or paying off large amounts of debt can lead to unintended consequences.

This type of information will be clear once you have a full understanding of how your credit works as it relates to the application process. And asking for advice will allow your credit to work in your favor as you apply for a mortgage.

Make Large Deposits

Along with your credit score, your monthly bank statements are vital pieces of information that will factor into your application.

We advise that you do not make large cash deposits into your account. When you apply for a loan, underwriters will go through your banking information with a fine-tooth comb. Unexplained deposits must have a paper trail. When it’s time to make a deposit, or fund your down payment, all income must be explained.

Quit Your Job

Stability says a lot about your application, especially when it applies to your income and employment. Keep your job and income steady and avoid any other major changes to how you make a living. Doing so will make the application process move more smoothly.


Remember, we are always here to answer any questions you may have.

Buying a home is a labor-intensive process that requires a lot of paperwork and back-and-forth. Do not feel discouraged or overwhelmed by the number of things on our to-do list, or if you feel the process isn’t moving forward as it should.

Our team will keep you well informed of what’s happening and what’s next in the process. We will work hard on your behalf and keep you in the loop during this very exciting time of becoming a homeowner.