5 Things You Should Not Do During the Mortgage Process
Buying a home is one of the most exciting milestones in life—but it also comes with a few rules you’ll want to follow carefully. While your lender is reviewing your finances and preparing your approval, certain actions could throw a wrench in the process and even jeopardize your loan.
To help you stay on track, here are five things you should not do during the mortgage process.
- Don’t Open New Credit Accounts
It might be tempting to take advantage of that store credit card or finance a new car, but resist the urge. Every time you apply for new credit, it triggers a hard inquiry on your report. That can temporarily lower your credit score and change your debt-to-income ratio—two factors your lender is watching closely.
Tip: Wait until after closing before you shop for furniture, appliances, or a new vehicle.
- Don’t Make Large Purchases
Speaking of shopping, even big purchases with cash can raise questions. Large withdrawals or unexplained transfers may be seen as red flags, and they can complicate your financial profile.
Tip: Keep your spending habits steady and save the splurges for after you get the keys.
- Don’t Change Jobs (If You Can Help It)
Lenders like stability. A sudden job change—even if it comes with a higher salary—can delay the process because your lender needs to verify your new income and employment history. Gaps or changes in your work record may create unnecessary hurdles.
Tip: If you’re considering a career move, try to hold off until after your mortgage has closed.
- Don’t Co-Sign Loans for Others
It might seem harmless to help a friend or family member by co-signing, but it adds responsibility to your credit profile. That new debt is counted as yours too, and it can affect your ability to qualify for a mortgage.
Tip: Keep your financial commitments limited until after your home purchase is complete.
- Don’t Fall Behind on Payments
This may seem obvious, but it’s critical. Even one late payment on a credit card, loan, or utility bill can lower your credit score and raise concerns with your lender. On-time payments show responsibility and reliability—two qualities that matter when borrowing a large sum.
Tip: Set up autopay or reminders to ensure you never miss a due date during the mortgage process.
Final Thoughts
The mortgage process is about showing lenders that you’re financially steady, reliable, and ready for the responsibility of homeownership. By avoiding these five common mistakes, you’ll help keep your approval smooth and stress-free—and be one step closer to moving into your dream home.
Ready to start your journey? Reach out to our team today—we’ll guide you through every step of the mortgage process and make sure you’re set up for success.