Your Mortgage Is in Process. Here Are 7 Things Not to Do Before Closing.
Getting approved for a mortgage is an important step toward owning a home. But there’s something buyers sometimes overlook: your finances still matter right up until closing day.
Just because your lender has issued a preapproval—or even a conditional loan approval—doesn't mean everything is finalized.
Lenders may review your credit, employment, bank accounts, and outstanding debts again before releasing the funds. A financial decision that seems perfectly harmless could create questions, delay closing, or even affect your loan approval.
Here are seven things worth keeping in mind while your mortgage is being processed.
1. Be Careful With Large Cash Deposits
Your lender needs to verify where the money in your accounts comes from, particularly the funds you plan to use for your down payment and closing costs.
Large cash deposits can be difficult to document. Even money you've saved over time may require additional explanation if you suddenly deposit it into your account.
What to do instead: Talk with your loan officer before depositing a significant amount of cash. Ask what documentation will be needed so you don't create unnecessary delays.
2. Hold Off on Major Purchases
You've found the house. Naturally, you're thinking about furniture, appliances, maybe even a new vehicle for the garage.
Not so fast.
Taking on additional debt can change your debt-to-income ratio, one of the factors lenders use to determine how much you can comfortably borrow.
A new car payment or financed furniture purchase could affect your mortgage qualification, even if you were previously approved.
What to do instead: Wait until after closing to finance major purchases. And before spending a substantial amount of savings, make sure your lender has confirmed how much money you need to keep available.
3. Don't Co-Sign Someone Else's Loan
Helping a family member finance a vehicle or qualify for a loan might seem like a generous gesture. Unfortunately, it can complicate your own mortgage.
When you co-sign, you accept legal responsibility for that debt. Your lender may need to include the payment when calculating your financial obligations, even if someone else intends to make every payment.
What to do instead: Avoid taking responsibility for new debt until your home purchase is complete.
4. Avoid Unnecessary Bank Account Changes
Mortgage lenders review bank statements to verify your assets and track the money being used for your purchase.
Moving funds between accounts, opening new accounts, or closing existing ones can create additional paperwork.
Transfers aren't necessarily a problem, but your lender may need to document where the money originated and where it went.
What to do instead: Keep your banking arrangements consistent when possible. If you need to transfer funds, ask your loan officer how to document the transaction.
5. Don't Apply for New Credit
That tempting store credit card offering 20% off your new furniture? It can wait.
Applying for new credit may result in a hard inquiry on your credit report. A single inquiry doesn't necessarily cause a significant change, but new accounts, additional balances, and multiple applications can affect your credit profile.
Your lender may check your credit again before closing.
What to do instead: Avoid applying for new credit cards, auto loans, personal loans, or other financing without first discussing it with your lender.
6. Don't Close Existing Credit Accounts Without Asking
It's easy to assume that closing a credit card you no longer use will make your finances look better.
Not necessarily.
Closing an account can reduce your total available credit, potentially increasing your credit utilization ratio. Depending on your credit history, this could affect your score.
What to do instead: Keep existing accounts in good standing, make payments on time, and avoid unnecessary changes until closing.
7. Don't Overlook Changes in Employment or Income
A new job, a change in compensation, or a decision to become self-employed can affect how your lender evaluates your income.
Even a promotion or better-paying job may require updated employment verification and documentation.
Lenders generally need to confirm that your qualifying income is stable and meets their underwriting requirements.
What to do instead: Tell your loan officer about any expected employment or income changes before making the move whenever possible.
The Best Rule? Ask Before You Act.
You don't need to put your entire life on hold while purchasing a home. You simply need to be mindful of financial decisions that could affect your mortgage.
If you're unsure whether a purchase, transfer, new account, or job change could cause a problem, make a quick call to your lender.
A five-minute conversation today may prevent a frustrating delay later.
A Final Thought From Bo
After more than 25 years working in Oklahoma real estate, I've seen how much easier a transaction can be when buyers understand the process and know what to expect.
Whether you're purchasing a resale property or a newly constructed home in Yukon, Mustang, or the surrounding Oklahoma City Metro, good communication between you, your lender, and your real estate professional matters.
The goal isn't simply to get your loan approved. It's to get you to closing with as few surprises as possible.
I'm Bo Kociuba with McGraw Realtors/Best Oklahoma Homes. If you have questions about available homes, new construction, or the buying process, I'm happy to help.