Things To Avoid After You Apply for a Mortgage

You've submitted your mortgage application—congratulations! You're one big step closer to homeownership. But while it may feel like the hard part is over, there’s a critical phase between application and closing where what not to do is just as important as what you've already done. Once a lender has reviewed your financial profile, consistency is key. Any sudden changes can raise red flags and potentially delay—or even derail—your home loan approval.

Here are the top things to avoid after applying for a mortgage:

1. Don’t Open or Close Bank Accounts

It might seem harmless, but switching bank accounts or moving large sums of money can complicate your lender’s ability to verify your assets. Lenders want a clear, traceable history of your funds. Sudden changes can raise questions and may require additional documentation, which can slow down the process.

2. Avoid Applying for New Credit

Whether it’s a new credit card, a car loan, or a store financing deal, avoid opening new lines of credit. Each credit inquiry can lower your credit score slightly and may impact your debt-to-income ratio—two crucial factors in mortgage approval.

3. Don’t Make Big Purchases

It’s tempting to start shopping for new furniture, appliances, or home upgrades—but press pause. Using credit or large chunks of cash during this period can affect your qualifying status. Even if you're approved for a mortgage, big purchases could lead to a re-evaluation of your financial stability right before closing.

4. Don’t Co-Sign for Anyone Else

As generous as it may seem to help someone else by co-signing a loan, doing so increases your financial obligations in the eyes of your lender. Even if you’re not the one making payments, co-signed loans count against your debt load.

5. Avoid Career Moves

Switching jobs, becoming self-employed, or making major changes to your income can raise concerns. Lenders are looking for stable, verifiable income. If you're considering a change, speak with your loan officer first.

The Golden Rule: Talk to Your Lender First

Any time you're unsure whether a financial decision might impact your mortgage, check in with your lender before taking action. We're here to guide you, and it's always better to be proactive than to deal with delays or complications later.

Final Thoughts:

Securing a mortgage is a journey, and while it’s exciting to envision life in your new home, staying financially steady is crucial during this final stretch. If you have any questions or want to make sure you’re on the right track, don’t hesitate to reach out.