What Not To Do After Applying for a Mortgage

So, you’ve submitted your mortgage application—congrats! But now comes a critical stage in your homebuying journey: maintaining financial consistency. While it might be tempting to make changes or celebrate with a big purchase, these actions can negatively affect your loan approval.

Lenders rely on your financial snapshot at the time of your application. Sudden changes can raise red flags and potentially derail your loan process. Here’s a list of important things to avoid after applying for a mortgage:

1. Don’t Change Bank Accounts

Switching bank accounts can complicate your financial records and confuse your lender. Lenders need a clear, consistent picture of your funds and spending habits. Opening or closing accounts can trigger additional documentation requests and delays.

2. Don’t Apply for New Credit or Close Any Credit Accounts

Whether it’s a new credit card or auto loan, any change to your credit profile can affect your credit score and debt-to-income ratio. Even closing an unused account can backfire by shortening your credit history or lowering your available credit.

3. Don’t Deposit Large Sums of Cash

Lenders need to verify the source of your funds. Large, unexplained cash deposits could be a red flag and may require extensive documentation to explain. Avoid moving large amounts of money unless it’s part of a documented gift or transfer your lender is aware of.

4. Don’t Co-Sign Loans for Anyone

When you co-sign a loan, you’re taking on someone else’s debt—and that shows up in your credit report. Even if you're not the one making payments, lenders will factor in that liability when evaluating your mortgage eligibility.

5. Don’t Make Big Purchases

That new couch or car may seem like a great way to prep for your new home, but hold off. Big purchases increase your debt and reduce your cash reserves, both of which can affect your loan approval. Even buying appliances or furniture can alter your debt-to-income ratio enough to delay or deny your loan.

The best rule of thumb? If it affects your finances, consult your lender first. A mortgage underwriter is looking for stability and predictability in your financial behavior. Staying consistent with your accounts, credit, and spending habits is the best way to keep your home purchase on track.

You’re almost at the finish line—don’t let small mistakes jeopardize your dream of homeownership. When in doubt, talk to your mortgage advisor before making any financial moves.