What NOT to do when obtaining a Home Loan

Attention Home Buyers who are planning to buy a home using financing, who are in the process of buying a home or are already in escrow…this message is for YOU!

As a transaction coordinator, I see many escrows fall out.  Though it is quite a bummer when that happens, it is the nature of the real estate business so I have gotten used to it.  What is REALLY a bummer is when the unassuming buyer hears the news that their loan has fallen through…thus escrow and their successful dream home purchase goes out the window.  Not good!!

The process of buying a home can be stressful enough…in order to keep you from making a HUGE mistake that could keep your loan from going through, please review the below list of activities to NOT engage in while your loan in being approved.  Following this list is crucial to completing a successful loan funding and smooth purchase of your new home.  

You will want to wait until escrow closes before doing any of the things listed below.

Do NOT make any big purchases.  Don’t go buy or lease a new car while your loan is in the approval stage.  This could cause your lender to see a big red flag on your credit, thus not approving your loan.

Do NOT make any big lifestyle changes.  For example: Don’t quit your job or adopt a child…these things might make a lender think that you may not be financially responsible for your loan and pull the approval.

Do NOT forget to turn in important paperwork.  Your lender needs those items in order to process your loan, fund and eventually close escrow.  If escrow is held up by the buyer not returning paperwork, the Seller may cancel.

Do NOT change your credit in any way.  Don’t open any new credit cards causing the lender to see an inquiry into your credit.

Do NOT max out credit cards or pay bills late.  You want to keep your debt-to-credit ratio as low as possible while your loan is in process.

Once your home purchase closes escrow you can carry on doing any of the items on the above list at your own discretion.  Once the loan funds and the escrow closes you are clear to live your life!

Your real estate agent will thank you for sticking to these guidelines while your loan is in process.  It is their goal and my goal to complete a smooth transaction on all fronts for our clients.


Brittney is an expert Transaction Coordinator and 3rd generation real estate fanatic with over 12 years of transaction experience and a background in file management.

CalBRE 01450176

Email Brittney at brittney@signheretransactions.com


Instagram @signheretransactions

Connect with me!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s