Getting approved for a mortgage feels like crossing the finish line, but it is not. Lenders routinely re-verify credit and employment shortly before closing, and changes to your financial picture during that window can delay the loan or unravel it entirely. Here are the most common missteps and how to avoid them.

1. Financing Big Purchases

The classic mistake is buying furniture, appliances, or a car on credit between approval and closing. New debt changes your debt-to-income ratio and can drop your credit score. Even store financing with no payments due for a year appears as a new account and obligation. Wait until after closing; the sofa will still be for sale.

2. Opening or Closing Credit Accounts

Opening a new credit card triggers an inquiry and a new account, both of which can move your score. Less obviously, closing old accounts can also hurt, because it reduces your available credit and can raise your utilization ratio. During the mortgage window, the best move is to leave your credit accounts exactly as they are.

3. Missing Any Payment

A single late payment on a card, auto loan, or student loan during underwriting is one of the most damaging events possible, because payment history is the heaviest factor in credit scoring and lenders see it immediately on the pre-closing refresh. Set up autopay for at least the minimums on every account until the keys are in your hand.

4. Moving Money Without a Paper Trail

Underwriters must document the source of your funds. Large, unexplained deposits, shuffling money between accounts, or accepting an undocumented cash gift can all stall the file. If family is helping with your down payment, ask the lender for their gift letter requirements early, and keep transfers simple and documented.

5. Changing Jobs at the Wrong Moment

Lenders verify employment near closing. A voluntary job change, a shift from salaried to commission-based pay, or a move to self-employment mid-process can force underwriting to start over on your income. If a change is unavoidable, tell your loan officer immediately rather than letting the verification call reveal it.

6. Co-Signing for Someone Else

Co-signing a loan makes you legally responsible for the payment, and lenders count it as your debt. Helping a relative with their car loan during your escrow period can quietly push your ratios out of bounds.

The Simple Rule

From application to closing, keep your financial life boring: same job, same accounts, same balances, on-time payments, no surprises. If anything must change, call your loan officer first. Underwriters dislike surprises far more than they dislike questions.

Article Was Generated By AI.