By Jeff Lazerson | jlazerson@mortgagegrader.com | MortgageGrader.com | April 27, 2026

Article originally posted in Orange County Register on April 23, 2026

As I wrote last week, 47% of all borrowers get anxiety or panic attacks during the homebuying process.

One way to reduce that stress during the house hunt and buying process is to take control of things you can control. And the most important thing you can control is your actions and behavior during the mortgage application process.

Let’s go through the list.

First and foremost, get yourself fully preapproved before doing any home searching. In addition to your loan application, your mortgage loan originator and loan processor are going to ask you for a lot of documentation such as tax documents, paystubs and bank statements.

Do not take photos of these documents and then text them to your lending team. Loan people pull their hair out when this happens. It becomes difficult to put the documents in proper order with so many pages. On top of that, the photographed documents are usually illegible.

Rather, take the time to scan and email the documents to your lender’s secure site. Or, just overnight them or bring them to your lender’s office if you don’t have scanner access.

Provide all pages of bank statements, even if it’s a blank page. Provide all pages and schedules of your tax returns. Lenders require this.

If you have your credit report locked down (sometimes called a credit freeze or security freeze), be sure to unlock all three bureaus (Experian, Equifax and Transunion) before your lender attempts to run your credit report. Remember to lock it back up once your lender pulls the credit reports.

If you have any disputed accounts on your credit report, remove them before your credit is run. Disputes can skew the credit scores. The underwriter will ask for a new credit report with the disputes removed before granting credit.

Do not go out and take on new debt such as buying furniture or a car during the home loan process. Be sure to continue to pay your bills on time. Lenders monitor credit all the way up to the time of the loan funding. After funding, you can knock yourself out with new purchases, if you want.

Sign and date your lender disclosures as soon as possible. Documents are typically sent via email. Your lender can’t order your appraisal until you sign your “intent to proceed.”

Have the home inspected as soon as possible after getting into escrow. You want to do this before spending money on the appraisal. In the event you decide not to buy that home because it didn’t pass muster, at least you’ve saved yourself the cost of an appraisal.

Do your best to avoid moving money around to different accounts during escrow and two months before going into escrow. Your loan processor must track the paper trail of any large deposits, say more than a paycheck. That means a lot more work for you, too.

Lenders always ask for the most recent two months of bank statements. And they always ask for an explanation if they see a large deposit.

Never bring funds into escrow from a previously undisclosed account. The loan will stop in its tracks until the mystery money is cleared up and properly documented.

Using cash on hand (aka mattress money) to contribute to your down payment and closing costs is a big no-no for most every loan except FHA in certain scrutinized situations. If you have a substantial amount of cash on hand that you intend to use, put it in your bank account more than two months ahead of home shopping.

Disclose all the property you own, even if it’s just raw land. Your lender has access to some sophisticated tracking tools, which can find every loan. The lender is largely looking for undisclosed debts and payments.

Shop around for homeowners’ insurance as early as possible once you identify the home. Your lender is going to need the insurance company and premium to plug into your loan package.

Do your best to avoid changing jobs during the escrow period. The lender will call and verify employment right before the loan funds.

If you must change jobs before your loan funds, tell your lender as soon as possible so that they can verify the new job and income. A lot of lenders require at least one paystub on the new job before funding a mortgage. Check with your lender and calendar, accordingly.

Don’t go out of town or on vacation. Leaving town leaves you less able to access documents or conditions that might be requested by the underwriter. And you must sign loan documents in front of a notary. It’s always more difficult to arrange signings when you are gone. It could even delay your closing.

Be cooperative and timely in responding to all lender requests.

For example, there might be recent credit inquiries in your credit report. Your loan processor is required to have you explain those and whether you took out credit from the creditor inquiry list.

If you are not understanding something in the process, be sure to ask your mortgage loan originator to explain it.

On the flip side, if your financial situation is complicated and nonobvious, be sure to take the time to explain it to your mortgage loan originator. The better you are understood, the easier your loan will get done.

Freddie Mac rate news: The 30-year fixed rate averaged 6.23%, 7 basis points lower than last week. The 15-year fixed rate averaged 5.58%, 7 basis points lower than last week.

The Mortgage Bankers Association reported a 7.9% mortgage application increase compared with one week ago.

Bottom line: Assuming a borrower gets an average 30-year fixed rate on a conforming $832,750 loan, last year’s payment was $317 more than this week’s payment of $5,117.

What I see: Locally, well-qualified borrowers can get the following fixed-rate mortgages with one point: A 30-year FHA at 5.375 %, a 15-year conventional at 5.25%, a 30-year conventional at 5.875%, a 15-year high balance conventional at 5.625% ($832,751 to $1,249,125 in L.A. and OC and $832,751 to $1,104,000 in San Diego), a 30-year high balance conventional at 6.125% and a jumbo 30-year fixed at 5.99%.

Eye-catcher loan program of the week: A 30-year mortgage, interest-only payments, fixed for the first five years at 5.875% and 1 point cost.

Jeff Lazerson, president of Mortgage Grader, can be reached at 949-322-8640 or jlazerson@mortgagegrader.com. His website is www.mortgagegrader.com.

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