"Act like you're broke. Don't spend a penny." - Jen Corso

Introduction:

Getting pre-approved for a mortgage is an exciting milestone in the homebuying process. It means a lender has reviewed your finances and determined how much you may be able to borrow.

But many buyers don’t realize something important:

Your loan isn’t fully approved until closing.

Between pre-approval and closing, lenders continue to monitor your financial situation. Certain changes could delay your loan — or even cause the lender to deny it.

If you're preparing to buy a home, here are some important things you should avoid doing after getting pre-approved.

1. Don’t Make Large Purchases

It can be tempting to buy new furniture, appliances, or even a car while preparing for your new home.

However, large purchases can increase your debt-to-income ratio, which lenders carefully monitor.

This could reduce the amount you're qualified to borrow or raise concerns during final loan approval.

Tip: Wait until after closing before making major purchases.

2. Don’t Open New Credit Accounts

Opening new credit cards or financing plans can impact your credit score and debt levels.

Even store financing offers like “0% interest for 12 months” can affect your loan qualification.

Lenders often recheck your credit before closing, so it's best to avoid applying for any new credit accounts during the homebuying process.

3. Don’t Change Jobs Without Talking to Your Lender

Employment stability plays a major role in mortgage approval.

If you switch jobs — especially if you change industries or move from salaried to commission income — your lender may need to re-evaluate your loan application.

Before making any career changes, it’s wise to consult your lender first.

I had a buyers get a promotion with raise. The buyer didn't even tell us until it was closer to closing on the home. The lender had verified employment and income before there was a clear to close and there was an increase of pay. The lender had to restructure the loan, which took an additional week and almost didn't happen.

Another buyer luckily mentioned it to the lender. We told her to take the promotion buthold off on receiving the extra income until after they closed on the home.

4. Don’t Miss Any Bill Payments

Your payment history has a significant impact on your credit score.

Even one late payment on a credit card, car loan, or other bill can lower your score and raise concerns for the lender.

During the mortgage process, it’s especially important to pay every bill on time.

5. Don’t Deposit Large Amounts of Cash Without Documentation

Lenders review bank statements carefully to verify the source of your funds.

Large, unexplained deposits may require documentation and could slow down the underwriting process.

If you plan to receive financial gifts for your down payment, make sure they are properly documented according to lender guidelines.

6. Don’t Close Existing Credit Accounts

Some buyers assume closing unused credit cards will improve their finances before buying a home.

However, closing accounts can actually lower your credit score by reducing your available credit and shortening your credit history.

It’s usually best to leave existing accounts open until after closing.

7. Don’t Co-Sign Loans for Someone Else

Co-signing for a friend or family member might seem harmless, but lenders count that loan as part of your financial obligations.

This can increase your debt-to-income ratio and potentially affect your mortgage approval.

Until your home purchase is complete, it's safest to avoid co-signing any loans.

Why These Steps Matter

Mortgage approval is based on your financial profile at the time you applied.

If that profile changes significantly before closing, lenders may need to reassess your application.

By keeping your finances stable during the process, you increase the likelihood of a smooth transaction.

The Bottom Line

Getting pre-approved is an important step toward buying a home, but it’s not the final stage of the mortgage process.

Maintaining consistent finances between pre-approval and closing helps ensure there are no surprises when it’s time to finalize your loan.

If you're preparing to buy a home in or around Batavia, understanding these steps can help keep your home purchase on track.

If you're preparing to buy a home and want to make sure you're fully ready, I’m happy to walk you through the steps so there are no surprises along the way.

Reach out to me at: www.jencorso.com

Check out this blog: "The Hidden Cost of Buying a Home (No one warns you about)"

The Author is Jennifer Corso - Realtor and Insurance Agent. This article is for educational purposes and based on Jennifer Corso’s professional experience.