Between applying for a mortgage and closing, lenders keep watching your credit, income, debts, and bank accounts. Changes in any of these areas can delay or even kill your loan approval. National mortgage resources, credit bureaus, and consumer guides are very consistent on what not to do in this window.
1. Do not buy a new car or other big-ticket item
Buying or leasing a car, boat, furniture package, or expensive electronics on credit can spike your debt-to-income ratio and lower your credit score. Lenders and mortgage insurers warn that big purchases before closing are one of the fastest ways to derail an approval.
If you can sit in it, drive it, or plug it in and it costs thousands of dollars, wait until after closing.
2. Do not open or close credit cards or other credit lines
Opening a new credit card or loan creates a hard inquiry and changes your credit profile. Closing old accounts can hurt your length of credit history and utilization ratio. Both moves can drag down your score or change your risk profile at the worst possible time.
If a store clerk offers a discount for opening a card, the answer while you’re in escrow is no.
3. Do not miss payments or pay bills late
Late payments on credit cards, auto loans, student loans, or other accounts can hit your credit score hard and may cause a lender to reconsider your approval. Major lenders and credit bureaus list new late pays during underwriting as a serious mistake to avoid.
Put every payment on autopay or calendar reminders until you have your keys.
4. Do not change jobs or cut your hours without talking to your lender
Quitting a job, switching employers, going from W-2 to self-employed, or dropping from full-time to part-time can all trigger new income verification and underwriting questions. Closing checklists from mortgage insurers and lenders explicitly warn against changing jobs before closing if it can be helped.
If a job change is unavoidable or an opportunity you can’t pass up, talk with your lender and your agent before you sign anything.
5. Do not make large unexplained deposits or move money around
Big cash deposits that aren’t from your regular paycheck, or moving money between accounts without a clear paper trail, are red flags for underwriters. Mortgage guides highlight that large deposits must usually be documented and sourced, and surprise transfers can delay final approval.
If you need to move funds, ask your lender first how to do it cleanly and what documentation they’ll need.
6. Do not cosign loans for anyone
Cosigning on a car, personal loan, or credit card means you’re legally responsible for that debt. Underwriters will count that payment against your debt-to-income ratio even if someone else is supposed to make the payments. Industry “do not do” lists specifically call out cosigning as a risk during the mortgage process.
You can help friends or family later. While you’re buying a home, protect your own approval first.
7. Do not ignore calls, emails, or document requests from your lender
One of the most common closing problems is simple delay. Bankrate, Experian, and others note that ignoring lender questions or turning in documents late can push back your closing or cause your rate lock to expire.
When your lender or our team asks for something, assume it’s time sensitive. Fast responses keep your file at the front of the line.
8. Do not take out short-term or payday loans
Short-term, high-cost loans raise your debt, hurt your cash reserves, and signal financial stress to underwriters. Closing guides explicitly list payday loans and similar products as items to avoid before closing on a mortgage.
If you find yourself tempted to use one, call us and your lender. There may be a better solution that won’t jeopardize your purchase.
9. Do not drain your savings or forget about closing costs
Some buyers empty accounts for furniture, moving, or other expenses and then struggle to show enough funds for closing and reserves. Lender and consumer finance sites stress the need to keep enough cash for down payment, closing costs, and some cushion for emergencies.
If you’re not sure how much you need to keep in the bank, we’ll help you build a realistic cash-to-close and reserve plan before you start spending.
10. Do not skip professional advice or rush big decisions
Many national “what not to do” lists for buyers also warn against making major contract decisions without guidance. Examples include waiving inspections without understanding the risk, ignoring contract deadlines, or trying to go it alone against experienced listing agents.
Your lender and your agent are there to protect you from surprises. If you’re about to sign, spend, or change something that feels big, slow down and ask first. A quick call can save a deal.