I am going through the mortgage process right now and have recently been approved. What I did was make sure all my credit cards had a zero balance for one full cycle, before starting the application process. Even with that, banks are being anal on the applications. I’m purchasing my 3rd home, and have never experienced as excruciating as this (I always pay everything on time and buy within my means).

I’m in a “LUL” period for about 3 months while I go through this process…once I close on the house, I’ll start up the credit card / coin churn process again.

Here’s two simple pieces of advice:

1 – Don’t give the banks any reason to reject your loan application…they probably will in this climate.

2 – Pay all credit cards balances in full and live within your means. I’d stay away from any house that requires a Jumbo Loan…you may have to live with if forever since nationally house prices are falling, and finding someone three years from now, who is willing to pay what you’re paying now, will be almost impossible.

Good Luck