1.) When Loan Officers issue pre-approvals without reviewing the relevant bank statements, pay stubs, and tax returns. We all know that virtually every loan program requires these documents and that underwriters examine them closely.

Loan Officers should obtain these documents and address potential challenges (like large deposits, payroll deductions, and unreimbursed expenses) up front. Issuing a pre-approval without a real analysis has resulted in a lot of avoidable heartache.

2.) When real estate agents don’t meet the appraiser at the house armed with comparable sales to support the selling price. Today, a home’s value has to be validated twice – to the buyer and to the lender’s appraiser. Good agents know that it is easier to establish the best value while the appraiser’s opinion is being formed (as opposed to getting the appraiser to reconsider later).

3.) When problems arise (and they do) and people bury their heads in the sand. Nothing gets “snuck by” anymore. There are so many checks and balances in the process now that nothing is hidden. Being honest up front gives everyone the best chance for the best outcome.

4.) When people think they know more than they do. Agents who think they are mortgage experts or loan officers who think they are appraisers, are some examples. It’s hard enough to keep up with one area of the business at an expert level. More than one? Very rare indeed.

5.) When non-real estate attorneys get involved in real estate transactions. Whether it’s arrogance or laziness, I have seen too many deals get messed up because people used their business attorney to buy a home.

Anything bother you that can be avoided?