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Buying or refinancing a home is exciting, but it can also be overwhelming. The process is full of details, and small missteps can delay closing—or worse, put financing at risk. To help, here’s a clear guide to the key Do’s and Don’ts every borrower (and realtor) should keep in mind.

The Do’s: Set Yourself Up for Success

• Be upfront and complete on your loan application. Transparency builds trust and prevents last-minute surprises.
• Get pre-approved early so you know your buying power before house hunting.
• Stay organized by keeping income and asset documents—pay stubs, W-2s, bank statements—readily available.
• Stay local until closing. Washington requires even non-borrowing spouses to sign certain documents, so being nearby matters.
• Watch the calendar. Escrow and bank holidays (RCW 1.16.050) can affect scheduling.
• Check your credit report in advance. Clear up errors or surprises before they derail your loan.
• Build and maintain credit. Aim for at least three active accounts with consistent history; if you’re “credit invisible,” ask about non-traditional options.
• Shop for loan options wisely. Consolidate inquiries into a short timeframe to protect your score.
• Communicate promptly. Reply quickly to requests from your loan officer, realtor, and escrow—delays in paperwork can stall closings.
• Review your Loan Estimate and Closing Disclosure. Ask questions early about fees, cash-to-close, or timing.
• Consider locking your interest rate at the right time to avoid market swings.
• Pause major life changes (marital status, relocation, starting a business) until after closing.
• Share legal paperwork such as bankruptcy discharges or divorce decrees if they apply.
• For self-employed borrowers, consult with your lender early—requirements differ.
• Provide the two most recent monthly bank statements, along with any relevant financial records, demonstrating sufficient and stable assets to close.
• Keep funds steady until closing to avoid underwriting concerns.
• Use verifiable funds for earnest money deposits. Always document deposits, gifts, or transfers.
• Follow proper procedures for gift funds. Work with your lender to document sources and transfers correctly.
• Stay employed (or provide an offer letter if changing jobs in the same field).
• Attend your final walkthrough to confirm the home is in agreed-upon condition.

The Don’ts: Avoid These Common Pitfalls

• Don’t take on new debt before closing—no new credit cards, car loans, or co-signing.
• Don’t close long-standing accounts until after your loan funds. Longevity matters for credit scoring.
• Don’t pay off collections or debts unless advised—it can sometimes hurt more than help.
• Don’t quit your job mid-process. Stability matters; changes can delay or derail approval.
• Don’t rely on fluctuating part-time income unless it’s been steady for at least two years.
• Don’t use cash for earnest money. Escrow requires funds to be traceable.
• Don’t make undocumented large deposits. Provide paper trails for transfers or unusual activity.
• Don’t move funds between accounts without first checking with us first.
• Don’t ignore property condition. Major new issues can cause underwriters or appraisers to delay or deny approval.
• Don’t use ACH transfers for escrow funds. Escrow requires same-day wires or cashier’s checks.
• Don’t wait until the last minute to send funds—give escrow time to verify.

For Realtors

• Walk through this checklist with buyers during contract prep.
• Confirm concessions, addendums, and repairs are in writing. Underwriters rely on clean contracts.
• Address HOA/condo requirements early—insurance, budgets, and reserves can be deal-breakers.
• Encourage clients to shop for homeowners insurance early.
• Share escrow wiring safety tips to help clients avoid fraud.