What NOT to Do After Applying for a Mortgage
1. Don’t Change Jobs Without Talking to Your Lender First
A new job—even one with higher pay—can raise questions for lenders or stability of employment/income.
They may need to re-verify employment, review your new income structure, and confirm job stability. This is especially important if you move from:
Salary to commission
W-2 to self-employed
One industry to another
A raise is great. A raise that accidentally creates a mortgage underwriting problem is considerably less great.
Always check with your lender before making a career move during the mortgage and homebuying process.
2. Don’t Open or Close Credit Accounts
Opening a new credit card, financing furniture, or buying a car can impact your loan.
These actions can:
Lower your credit score
Increase your monthly debt
Change your debt-to-income ratio
Even purchases that seem manageable or affordable to you can affect your approval more than you think.
That 0% financing on the new sectional may sound fantastic. Unfortunately, the underwriter does not share your enthusiasm for your selection of the upgraded leather option or in-home delivery.
3. Don’t Make Large Purchases
Speaking of that new couch...
Large purchases—especially on credit—can increase your debt, reduce your available cash, and raise red flags during underwriting.
If it’s not essential, wait until after closing. Or a better way I can frame it - don't do things that you are already in the habit of doing with your regular financial life.
The house will still have room for a refrigerator after you own it. I promise.
4. Don’t Move Money Between Accounts Without Saving Documentation
Lenders carefully review your bank statements. Large or unusual transfers can trigger questions like:
Where did this money come from?
Is it a loan?
Is it a gift?
This can lead to delays or additional documentation requirements.
Moving money between three accounts because “that’s just how I manage things” may make perfect sense to you. To an underwriter, you may have just created a small investigative project.
Keep your finances stable and easy to explain.
5. Don’t Miss Any Payments
Even one missed payment can lower your credit score considerably, raise concerns for lenders, and potentially delay or jeopardize your loan approval and closing.
This includes:
Credit cards
Car loans
Student loans
Stay current on all obligations....autopay is your friend.
6. Don’t Deposit Large Amounts of Cash
Cash deposits are difficult to verify. Lenders may not be able to use these funds unless they can clearly trace the source.
If you suddenly remember the $15,000 you've been keeping in a safe for the last ten years, congratulations on finding it! But please call your lender before walking into the bank with it.
We are required to verify the source of all large deposits, and it's nearly impossible to do it using cash. We don't know if it was money from your safe, a gift from grandma, or if you started an underground criminal money laundering operation.
Always talk to your lender before making large deposits outside of payroll.
7. Don’t Co-Sign for Someone Else
Co-signing a loan creates a new financial obligation. Even if you’re not making the payments, lenders may count it against you.
This can:
Increase your debt-to-income ratio
Reduce your borrowing power
Helping someone is admirable. Helping your cousin finance his new car three days before your mortgage closes is perhaps a little too admirable. You certainly wouldn't want to be homeless because you helped someone buy a car!
Wait until after closing.
8. Don’t Assume You’re “Done” Until You Close
Many buyers think once they’re get a conditional approval, they’re in the clear.
But lenders typically:
Re-check credit before closing
Verify employment again
Confirm there have been no major financial changes
So don't celebrate early. Stay consistent until the keys are actually in your hand.
What SHOULD I Do After Applying for a Mortgage?
Protecting your mortgage approval is actually pretty simple:
✔ Keep your job stable ✔ Avoid new debt ✔ Keep your finances consistent ✔ Ask your lender before making changes ✔ Stay organized with documentation
And perhaps the most important rule:
If you're about to do something involving your job, credit, debt, or a large amount of money, call your lender first.
It's much easier for us to answer a five-minute question than try to fix a problem five days before closing.
Key Takeaway
The period between mortgage approval and closing is all about consistency.
The less you change, the smoother your closing will likely be.
Buying a home is one of the biggest financial decisions you'll make. A few seemingly simple financial moves during the process can create unnecessary stress—or potentially even cost you the home.
When in doubt, always ask first.
And save the new truck, new furniture, career change, mysterious cash deposit, and generous co-signing for your cousin until after we hand you the keys.
Your mortgage lender will sleep better.
And so will you.
-Brian Kimball, Sr. Mortgage Advisor/Team Leader, The Lighthouse Group at Waterstone Mortgage