Keep Your Mortgage On Track

From Offer to Keys: How to Keep Your Mortgage on Track

You’ve got your pre-approval, your offer was accepted, and you're ready to close. This final stretch—from application to closing day—is the most critical time to be on your absolute best financial behavior.

Lenders perform final checks on your credit and employment right up to the minute they fund the loan. Any significant change in your financial profile can cause a major delay, change your loan terms, or, in the worst-case scenario, derail your entire closing.

To ensure a smooth journey to the closing table, here is the absolute "What NOT to Do" list:

1. DO NOT Change Your Job or Employment Status

Lenders qualify you based on your stable and consistent income. Even if your new job pays more, it is a huge red flag because it breaks the documented paper trail.

• Don't switch companies or change jobs.

• Don't switch from a salaried (W-2) position to a commission-based, hourly, or self-employed role.

• Don't become unemployed, take an extended leave of absence, or go on strike.

The Rule: Stay put. If a job change is unavoidable, notify your loan officer immediately—before you accept the offer.

2. DO NOT Open New Credit or Take on New Debt

Applying for new credit or taking out any kind of loan will lower your credit score and instantly change your debt-to-income (DTI) ratio, which is the key metric your lender uses to approve your loan.

• Don't open any new credit cards (even if it's for a store discount).

• Don't apply for, or co-sign on, an auto loan, personal loan, or student loan.

• Don't allow your credit to be pulled for any reason, by anyone.

3. DO NOT Make Any Large Purchases

It is incredibly tempting to start furnishing your new home, but a large purchase can instantly increase your debt and make your loan un-fundable.

• No New Cars or Leases: A new car loan is one of the fastest ways to kill a mortgage approval. The new monthly payment will dramatically change your DTI.

• No Big-Ticket Items on Credit: This includes that new refrigerator, washer/dryer set, living room furniture, or big-screen TV. Do not put it on a store credit card or use "interest-free financing" while in escrow. Wait until after closing.

• Avoid Liquidating Assets: Don't sell stocks or other investments without first consulting your loan officer, as this can complicate the asset verification process.

4. DO NOT Move or Shuffle Large Sums of Money

Lenders must verify the source of all funds used for the down payment and closing costs. Large, undocumented deposits into your bank account can delay closing while your lender requires a paper trail (known as “sourcing”).

• Don't switch banks or open new checking/savings accounts.

• Don't make any large cash deposits (generally anything over a few hundred dollars). Payroll deposits are fine, but all other large deposits must be sourced.

• Don't move money between different financial institutions unless absolutely necessary and documented by a clear transfer receipt.

5. DO NOT Change Your Marital Status

If you are getting married or divorced during the mortgage process, your lender must be made aware. A change in marital status can affect everything from vesting on the title to joint debt obligations, requiring a complete re-underwriting of the loan.

The Bottom Line: For the smoothest path to closing, act as if your financial life is frozen in time from the moment you apply until the moment you sign the final papers. When in doubt, call your loan officer BEFORE you act.