Applying for a mortgage is a major milestone on your journey to homeownership—but the process doesn’t end once your application is submitted. In fact, what you do after you apply is just as important as what you did before. Even small changes in your financial picture can impact your approval, interest rate, or even your ability to close on your new home.
To keep your home purchase on track, here are the key things to avoid after you apply for a mortgage:
1. Don’t Make Any Major Purchases
It can be tempting to start shopping for furniture, appliances, or even a new car once you’re under contract on a home—but hold off. Large purchases that increase your debt-to-income (DTI) ratio can raise red flags for your lender.
Why it matters: Higher debt or new lines of credit can affect your ability to repay your mortgage and might result in denial during final approval.
2. Don’t Open or Close Credit Accounts
You might think applying for a store credit card for those future home purchases is no big deal, or that closing unused accounts will boost your score. But both actions can temporarily lower your credit score or change your credit profile.
Why it matters: Lenders pull your credit multiple times—once at application and often again before closing. Changes can delay or derail your loan.
3. Don’t Change Jobs or Income Sources
If possible, keep your employment stable during the mortgage process. A new job, especially if it comes with a probationary period or commission-based pay, can complicate or slow down your mortgage approval.
Why it matters: Lenders want to see consistent, reliable income to ensure you can afford your mortgage payments.
4. Don’t Deposit Large Sums of Cash Without Documentation
Cash deposits that don’t have a clear paper trail can raise concerns for underwriters. If you’re receiving a gift or support from a family member, make sure it’s documented properly.
Why it matters: Lenders are required to verify the source of funds used in your home purchase to comply with financial regulations.
5. Don’t Miss Any Existing Debt Payments
Now’s the time to stay on top of your finances. Missing a credit card or loan payment during the loan process can drop your credit score quickly.
Why it matters: Late payments can not only hurt your credit score but also signal to lenders that you might be a risky borrower.
6. Don’t Cosign for Anyone Else
While you may want to help a friend or family member with a loan, becoming a cosigner adds to your debt obligations—even if you’re not the one making the payments.
Why it matters: Your lender has to count that cosigned loan against your debt load, which could impact your qualification.
Bottom Line
After applying for a mortgage, maintain financial stability and avoid making any significant changes until after closing. When in doubt, always check with your lender or real estate agent before taking any financial steps.
Buying a home is exciting—don’t let a simple mistake throw off your plans. Let’s connect to make sure your path to homeownership stays smooth and stress-free.
Providing guidance and assisting motivated buyers, sellers, tenants, landlords, and investors in marketing and purchasing property for the right price under the best terms. Determining clients’ needs and financial ability to purchase the best home for them. Call me today and let me help you find a home that can change your life!