November 11th, 2026 5:32 PM by Salim Kader MLS#130505
Planning to buy a home—or already under contract? A new car payment, an unexplained deposit, or a last-minute employment change can complicate your mortgage approval.
Many closing problems can be prevented with early preparation and clear communication. This homebuyer checklist explains how to protect your credit, document your funds, and keep your financing moving in Seattle and throughout Washington. Many recommendations also apply when refinancing.
A documented mortgage preapproval helps you understand your potential buying range and identify issues before making an offer.
Ask what has been reviewed, what conditions remain, and when the preapproval expires. Final financing still depends on underwriting, acceptable property information, and the lender’s requirements.
Review our loan application checklist and provide the items requested for your circumstances.
These may include income records, employment information, bank statements, and documentation of other assets. Tax returns and additional schedules may be required depending on your income and loan program. Submit complete documents, including all requested pages, through your loan team’s secure process.
Disclose your income, employment, debts, real estate ownership, and source of closing funds accurately. Early disclosure gives your team more time to evaluate circumstances and request supporting documents.
Include closing costs, prepaid expenses, escrow deposits, moving costs, and any required reserves in your budget. Also allow for maintenance, repairs, utilities, and ongoing expenses. Your comfortable payment may be lower than the maximum amount you qualify to borrow.
Review your reports for unfamiliar accounts, incorrect balances, late payments, collections, or other errors. Learn more about credit scores and mortgage qualification.
Checking your own credit does not lower your credit scores. If you find an error, discuss timing and documentation with your loan originator while pursuing correction.
You do not universally need three credit cards or 24 months of history on each account to qualify for a mortgage. Requirements vary, and opening accounts shortly before applying can create new inquiries and obligations.
Review these credit-building tips, and ask about available options if you have limited or no traditional credit history.
Compare rates, discount points, lender credits, fees, and lock periods—not just the advertised interest rate.
Credit-scoring models generally provide special treatment for mortgage-shopping inquiries within a limited period, commonly 14–45 days depending on the model. Learn more about credit inquiries and FICO scores.
Avoid opening new credit accounts, financing furniture, buying a vehicle, or making major credit-card purchases without first discussing the effect on your financing.
Consult your loan originator before co-signing a loan. The obligation may affect qualification even when someone else makes the payments. Continue following your loan team’s guidance through funding.
Closing an account or paying off a balance may affect your credit profile, available funds, or required documentation. A targeted payoff can help in some cases, but your loan team should compare the benefit with the cash needed for closing and reserves.
Keep required payments current. Lenders may update credit information, investigate new inquiries, or check for additional debt before funding. There is no universal rule that every lender re-pulls credit exactly 60 days after the original report.
There is no universal 45% debt-to-income limit for every mortgage. Requirements depend on the program, underwriting method, lender, and complete application.
Our earlier Qualified Mortgage and Ability-to-Repay overview provides historical background. These rules have changed since their initial implementation; ask your loan originator which current requirements apply.
A new job does not automatically prevent approval. However, changes to pay structure, hours, employment status, or start date may affect qualifying income.
An offer letter alone does not guarantee acceptance. Discuss planned changes, leave, retirement, or a move into self-employment before making commitments.
Overtime, bonuses, commissions, second-job income, and part-time earnings may require a documented history and an assessment of stability. Requirements vary. Declining income requires review rather than an automatic assumption that it can—or cannot—be used.
Self-employed borrowers may need additional documentation and income analysis. Discuss business changes, large expenses, and use of business funds with your loan originator. Business revenue is not automatically qualifying personal income.
If applicable, provide bankruptcy discharge and related documents. Eligibility depends on the event, dates, program, and other circumstances.
Divorce decrees or support orders may be needed to evaluate obligations or income you want considered. You do not have to disclose alimony, child support, or separate maintenance income unless you want it considered for qualification.
Provide requested bank, investment, or retirement records. Requirements may involve recent statements, transaction histories, or other verification.
Avoid unnecessary transfers while your funds are being documented. If a transfer is needed, keep records showing both its source and destination.
Physical cash can be difficult to document. Depositing it and waiting does not automatically make it an acceptable source of mortgage funds. Never conceal the source. Ask about documentation before depositing cash or relying on it for closing.
Keep evidence of the payment source, transfer or cleared check, and receipt by escrow. Your lender may request account records showing funds before and after payment.
Review these additional underwriting items that may require your assistance.
Documentation requirements vary by program, transaction, and deposit source. The “more than 50% of monthly qualifying income” definition applies in certain Fannie Mae circumstances; it is not universal.
Keep records for transfers, asset sales, gifts, refunds, and other significant deposits. Smaller deposits may also require explanation when questions arise.
Gift funds may be permitted, subject to donor eligibility, documentation, occupancy, and program requirements.
Ask about the gift letter and transfer procedures before money is sent. A gift represented as having no repayment obligation must not be an undisclosed loan.
Condo financing may involve review of project insurance, budgets, reserves, assessments, repairs, litigation, and other requirements.
Our earlier condominium rules article provides historical background. Requirements have evolved since 2022, so obtain a current project review. Borrower approval does not automatically establish project eligibility.
Review the limits on seller concessions before negotiating credits. Allowable amounts and uses depend on the program, occupancy, down payment, and eligible costs. Seller credits generally cannot replace a required down payment or automatically be taken as cash.
Tell your loan team about changes to price, credits, repairs, closing dates, occupancy, or other material terms. Real estate brokers can review this purchase and sale agreement checklist when preparing transaction documents.
Preapproval, conditional approval, and an appraisal waiver do not automatically satisfy inspection or financing contingencies. Discuss notices, deadlines, and waivers with your real estate broker. Seek legal advice when you need interpretation of contractual rights.
Provide your preferred insurance agent’s contact information and authorize coordination as needed. Coverage availability, deductibles, and premiums can affect the transaction. Condo master insurance and flood insurance may require additional review.
A preliminary quote is not the same as confirmed coverage that satisfies the lender.
A quoted rate is not necessarily locked. Request written confirmation of the rate, points or lender credits, expiration date, and applicable conditions.
Choose a period that realistically covers the remaining work. If closing may be delayed, discuss extension options before expiration.
Travel does not automatically prevent closing, but signing and identity-verification arrangements need advance planning. Depending on the transaction, remote signing, a mobile notary, or an approved power of attorney may be possible. Obtain advance acceptance from the relevant parties.
Washington homestead and community-property considerations may require a spouse or state-registered domestic partner to sign certain documents even when that person is not a borrower. Have your lender and escrow or title provider confirm the requirements.
Banking, escrow, lender, and county recording schedules can affect closing.
Review the current-year closing-holiday calendar with your loan team and escrow provider. Confirm operating schedules, wire-transfer cutoffs, and recording deadlines when planning your closing date.
ACH transfers and wires are different payment methods. Do not assume an ACH transfer, personal check, cashier’s check, or wire will be accepted or available for immediate disbursement. Confirm escrow’s instructions, requirements, and deadlines before initiating payment.
Banks may impose transfer limits, verification requirements, or cutoff times. Ask how long the transfer will take and confirm receipt with escrow.
Follow these wire-fraud prevention tips. Call escrow using a trusted phone number obtained independently and verify instructions before sending funds, especially after an unexpected change.
If you suspect a fraudulent transfer, contact your bank and escrow provider immediately.
Explore more guidance on closing on time.
Use the months before a purchase to review credit, build savings, organize records, and develop a realistic payment budget. These homebuying preparation tips can help you plan your next steps.
A smooth mortgage process depends on accurate information, documented funds, and timely communication. Pacific Coast Financial helps Seattle-area buyers and Washington homeowners understand requirements and coordinate financing with their closing schedule.
Have a question about a purchase, job change, deposit, or another decision before closing? Contact us using the information below before taking action.
Discuss Your Homebuying Next Steps
Consult your loan originator first. Financing furniture or increasing credit-card balances can affect qualification. Paying cash may reduce funds needed for closing or reserves.
Possibly. The effect depends on the employment, compensation, start date, and documentation. Discuss the change before resigning or accepting arrangements that affect qualifying income.
No universal mortgage rule requires three credit cards. Requirements vary, and options may exist for borrowers with limited traditional credit.
Usually, but transfers may require documentation. Ask your loan team first and retain records showing the source and destination.
Not automatically. A payoff may reduce DTI but use funds needed elsewhere. Ask your loan originator to compare the effect before proceeding.
Travel may be possible with advance planning. Confirm signing, identification, document access, and availability requirements with your loan and escrow teams.
No. Outstanding conditions, updated verification, property requirements, and other factors can still affect approval and funding.
Only if your escrow provider specifically accepts it for your transaction and confirms the timing. Follow verified instructions rather than assuming all electronic transfers work the same way.
Confirm funding and transaction completion with your loan team. Do not use possession or delivery of keys alone as a substitute for that confirmation.
Educational information only; not a commitment to lend or a guarantee of approval or closing. Requirements vary by loan program, lender, borrower circumstances, property, and transaction. Rates are subject to change until locked. Consult your loan originator before making financial changes and your real estate broker or attorney about contractual or legal questions.