To avoid unnecessary baldness I often suggest clients do all they can to plan for the mortgage transaction before the process begins. While there is no such thing as a fool proof plan, these four Don’ts and a Do have led many weary mortgage seekers to their financial promised land.

Don’t make any unnecessary purchases on credit. All loan payments, credit card bills, line of credit balances and other debt will be considered by a lender when reviewing your mortgage application.

When purchasing, don’t move money! This applies to both moving money within your own accounts or changing banks. When you apply for a mortgage, the lender will check your financial history as far back as three to six months. The less activity, the more solid the application will appear.

Don’t delay paying your bills. Creditors report delinquent accounts to credit reporting agencies and lenders review these reports. Delinquent accounts mean a higher risk to lenders. A higher risk to lenders may equal a higher interest rate and a lower mortgage amount.

Don’t change jobs or start a self-employed business just before applying for financing. Lenders require self-employed borrowers to show a two to three year registration of their income. So unless the opportunity is a significant improvement over your current position, stay where you are for now.

Do keep some extra cash on hand. In addition to the amount you have set aside for your closing costs, almost every mortgage transaction has unexpected costs.

If preparation is king then a lack thereof would be folly. It is always recommended that before beginning the purchasing or refinancing process, to see a mortgage broker or lender to find out the amount of financing you can obtain. Although a pre-approval is not a guarantee of financing, it is a good estimate of the amount of financing you could qualify for.  

•Got a mortgage related question? Arlene Francis, our new mortgage expert, will take questions from readers in this new column. Your past mortgage experiences – tear-jerkers, comedies or horrors – are also welcome. Email your questions and stories to: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it with ‘Ask Arlene’ in the Subject line.