Things Not to Do

Don't apply for new credit

Every credit inquiry can lower your credit score and signal to lenders that you're taking on new debt. Avoid applying for new credit cards, car loans, or any other financing.

Don't max out or overcharge your credit cards

Increasing your credit card balances raises your debt-to-income ratio, which can affect your loan approval. Keep balances as low as possible.

Don't close existing credit accounts

Closing accounts can reduce your available credit and shorten your credit history — both of which can negatively impact your credit score.

Don't consolidate debt without consulting your lender

Moving balances around or consolidating loans can change your credit profile in ways that affect your mortgage approval.

Don't change jobs or quit your job

Lenders want to see stable employment. Changing jobs — even for a higher salary — can complicate or delay your loan approval, especially if you move from salaried to self-employed.

Don't become self-employed

Switching to self-employment during the mortgage process requires two years of self-employment tax returns to qualify, which can disqualify you entirely.

Don't take on additional part-time work

New income sources need a documented history before lenders can count them. Adding new part-time work can actually complicate your application.

Don't make large purchases

Buying furniture, appliances, a car, or other big-ticket items before closing increases your debt and reduces your cash reserves — both of which lenders scrutinize.

Don't spend your down payment or closing cost funds

Lenders verify your assets right before closing. If your savings have dropped significantly, it could jeopardize your loan.

Don't make unusual or large cash deposits

Large or unexplained deposits raise questions about the source of funds. All deposits must be documented and sourced during the mortgage process.

Don't move money between accounts without a paper trail

Lenders track your assets carefully. Moving money between accounts without documentation can look suspicious and delay your closing.

Don't co-sign on anyone else's loan

Co-signing makes you legally responsible for that debt, which increases your debt-to-income ratio and can affect your own loan approval.

Don't change banks or open new accounts

Lenders need to verify your financial history. Opening new accounts or switching banks mid-process creates additional documentation requirements.

Don't ignore requests from your lender

Respond promptly to all requests for documentation. Delays in providing paperwork can push back your closing date or cause your rate lock to expire.

Don't make decisions without consulting your team

Before making any financial move during the home buying process, check with your realtor and lender first. What seems harmless can have real consequences.

Don't assume anything is too small to mention

When in doubt, ask. Your lender and realtor are there to guide you — transparency is always better than surprises at the closing table.