What NOT to Do Before Closing on a House
Getting pre-approved and having your offer accepted is exciting!! But many buyers don’t realize the mortgage process doesn’t end there.
Your lender continues reviewing your financial profile all the way up until closing, That means even small financial changes can potentially affect your loan approval.
Here are some of the biggest mistakes buyers should avoid before closing on a home.
Don’t Open New Credit Cards
That “save 20% today” offer at the furniture store can wait.
Opening a new credit card can impact your credit score, debt-to-income ratio, and overall loan qualification.
Even if you don’t max it out, the new account itself can raise concerns during the final loan review.
Don’t Finance Big Purchases
Avoid financing things like:
- Cars
- Furniture
- Appliances
- Boats or motorcycles
- Expensive electronics
Many buyers start thinking about furnishing their new home before they even close, but new monthly payments can change your debt-to-income ratio and affect your mortgage approval.
Don’t Co-Sign for Anyone
This is a big one that many buyers don’t think about.
Even if you’re not making the payments, co-signing for someone else’s loan can still show up as debt under your name.
That additional liability could impact your ability to qualify for your mortgage.
Don’t Miss Payments
Continue making all payments on time during escrow.
A single late payment can negatively affect your credit score and create issues with final loan approval.
Don’t Move Large Amounts of Money Around
Lenders often need to verify where funds are coming from.
Large unexplained deposits or moving money between accounts can create additional documentation requests and delays.
Before transferring large amounts of money, talk with your lender first.
Don’t Change Jobs Without Talking to Your Lender
Income stability matters during the loan process.
Changing jobs, especially switching from salaried to commission-based income, can affect your approval.
Always discuss employment changes with your lender before making a move.
The Best Advice? Keep Everything Stable
One of the best things buyers can do after going under contract is keep their finances as stable as possible until closing day.
No new debt. No major purchases. No big financial changes.
Think of it this way: don’t make any major financial decisions until the keys are officially in your hands.
Final Thoughts
Buying a home is exciting, and it’s completely normal to want to prepare for your new place right away. But protecting your loan approval should be the top priority during escrow.
A smooth closing often comes down to avoiding unnecessary financial changes before closing day.
If you’re thinking about buying a home and want guidance on how to avoid common mistakes during the process, I’d love to help walk you through it step by step.