Loan preparation is the most important step to prepare for the loan application process. Underwriting is the last stop for loan approval and due diligence requires they identify any recent changes in your finances, spending habits, and alterations to your credit or bank accounts. Any one of these issues can raise a red flag and extend the loan process. Plan ahead and follow the guidelines below. Consult with a credit adviser first in order to have the highest possible credit score. This will affect the interest rate of your loan!


  • Stay current on existing accounts
  • Continue to use your credit as normal
  • Keep records of credit use
  • Call your mortgage professional with any questions or concerns about your credit
  • Save your money, you may need it for closing costs
  • Maintain your current employment
  • Be prepared for full financial disclosure
  • Talk with your loan officer before making large deposits into your bank accounts


  • Apply for new credit
  • Close credit accounts
  • Max out credit cards
  • Make major purchases including furniture or vehicles
  • Consolidate your debt
  • Pay-off collections or “charge-offs”
  • Become a self-employed or 1099
  • Omit liabilities from your application
  • Change bank accounts

Following these guidelines will make the loan process run smoothly from beginning to end!