Regarding #2 and not paying off charge off and collections;

 Many LO's will agree, this is a tough point to get across to your clients - do not pay off charge offs and collections.

As if our job wasn't detailed enough, why add more paper work to the mix?  Here is an example that I came up with on a refinance loan - a family member.

 At origination my client says "we would like these three credit cards paid off at closing."

 Sounds easy.  A couple of days before close, they inform me they decided to write a check and pay off two of the accounts to 'make things easier'.

 Easier?  Hardly.  This is why.  We now need proof of payoff.  Cancelled check, statement showing no balance, etc.  It make a lot more work for the client and the originator, and if this loan is a purchase loan over 100% LTV, the odds are closing is delayed and the originator now becomes the bad guy in the eyes of the Realtor.  Believe it or not, we like to get our paychecks as soon as possible also (not everyone applies to this).

There is one other thing to be aware of:  when a credit report is pulled, as a buyer, you are usually safe from any more credit inquiries before your loans closes unless, but there are exceptions.

• Marginal Credit or a tough loan to close?  By the time your loan gets the the lender, probably subprime, they may and probably will pull their own credit report to compare to yours.  This can be a big problem if you decided not to make you last mortgage payment (it happened recently at my office).
• "But I have good credit, so I should be safe".  Good theory.  Some conforming lenders require their own reports as well.

My advice?  Apply first, don't waste a Realtor's time, and listen to your broker.

Good luck to all!