What Not To Do Before Closing

​With current market conditions and stricter credit underwriting by lenders and mortgage insurers, it's important to be mindful of your actions between mortgage approval and closing. Lenders may recheck your credit any time before funding. Here are some crucial ​What Not To Do Before Closing on your home purchase:

​1. Don’t Make Any Large Purchases on Credit
Unless you are going to be able to prove that they will be paid off before your closing date, buying big ticket items like cars, appliances, or furniture can affect your debt-to-income ratio and your credit score, potentially disqualifying you from the mortgage you were pre-approved for.

​2. Don’t Apply for New Credit
Avoid applying for new credit cards or loans. Each application results in a hard inquiry on your credit report, which can lower your credit score and raise concerns with your lender about your financial stability.

​3. Don’t Change Jobs
Even if it’s a better-paying job, you still are likely to be on a probationary period. Lenders prefer to see stable employment. Changing jobs or careers right before closing can make your income appear less reliable and may cause your lender to question your ability to make consistent mortgage payments.

​4. Don’t Co-Sign Loans for Others
Co-signing a loan increases your debt load and can affect your debt-to-income ratio. If the primary borrower defaults, you are responsible for the payments, which can strain your finances and impact your mortgage approval.

​5. Don’t Miss Bill Payments
Maintain timely payments on all your bills, even ones that you’re disputing. A late payment can hurt your credit score and raise doubts about your reliability in making future mortgage payments.

​6. Don’t Buy Furniture on Layaway or “Do not pay for XX years plan” until after funding