What to Avoid After Applying for a Mortgage
You’ve found the perfect home, submitted your mortgage application, and things are starting to feel real. Congrats! But before you pop the champagne, there’s one thing you need to know: your financial behavior between mortgage application and closing can make or break your deal.
Here’s a list of what not to do after you apply for a mortgage, so you can stay on the path to homeownership with no surprises.
🚫 1. Don’t Make Large Purchases
Buying new furniture or appliances before closing might feel tempting—but don’t do it. Big purchases can increase your debt-to-income ratio and could throw off your mortgage approval. Wait until after your loan closes to hit up that home goods sale.
💳 2. Don’t Open or Close Credit Accounts
Your credit score plays a major role in your mortgage approval. Opening new credit lines (like a store credit card) or closing existing ones can impact your score or alter your credit utilization ratio. Both are red flags for lenders.
💼 3. Don’t Change or Quit Your Job
Stability is key. Changing jobs, even for a better salary, can cause delays or even a denial if the lender can’t verify your new income or employment in time. Talk to your lender before making any career moves.
🏦 4. Don’t Make Large Deposits Without Documentation
Lenders scrutinize your bank statements. Large or unusual deposits (especially cash) can raise questions and require additional documentation. If you do need to move money around, talk to your loan officer first.
🔍 5. Don’t Co-Sign Loans for Anyone
Co-signing increases your financial liability—even if you’re not making the payments. It could be counted against your debt load and could jeopardize your mortgage.
📱 6. Don’t Ignore Lender Requests
If your lender asks for additional documents or clarification, respond promptly. Delays in providing paperwork can push back your closing date or risk your rate lock expiring.
🧾 7. Don’t Stop Paying Your Bills
It may sound obvious, but it happens. Don’t let any bills slip through the cracks during the homebuying process. One missed payment can tank your credit score and stall your mortgage.
Final Thoughts
Applying for a mortgage is a major milestone, and it’s worth protecting. Keep your finances steady and transparent until after you’ve closed and have the keys in hand. When in doubt, ask your lender before making any major financial moves—they’re there to help you succeed.
