Don't finance a car or furniture
Taking on new debt, even a small car loan or a furniture financing plan, changes your debt ratios and can push you outside your lender's approval limits. Wait until after closing to make major purchases on credit.
Don't quit or switch jobs
Lenders base your approval on your employment situation at application. A new job, especially with a probationary period or a switch to self-employment, can require your lender to re-underwrite the file or pull the approval entirely.
- Avoid job changes until after funding
- Don't reduce your hours or switch to contract work
- Tell your broker immediately if a change is unavoidable
Don't max out or open new credit cards
Applying for new credit causes a hard inquiry that can lower your credit score, and maxing out existing cards increases your credit utilization, both of which lenders review again before funding.
Don't move large sums of money without a paper trail
Big transfers close to closing can trigger new questions about your down payment source, even if the money is legitimately yours. Keep your accounts stable and avoid unnecessary transactions.
Don't skip a final check-in with your broker
A quick call with your broker a couple weeks before closing can catch small issues before they become big ones, like an outdated employment letter or a bank statement that needs updating.
Frequently asked questions
- Will my lender actually re-check my credit before closing?
- Many lenders do a soft credit pull close to funding to confirm nothing material has changed since your approval.
- What if I have to buy new appliances before moving in?
- It's fine to buy them, just try to pay in full or use existing credit rather than opening new financing before your mortgage funds.
- Is it okay to pay off a credit card balance before closing?
- Generally yes, paying down debt improves your ratios, but avoid closing the account entirely since that can sometimes affect your credit history length.