What NOT to Do When Securing Financing

When you’re in the process of buying a home, your financial behavior is under the microscope. To avoid delays – or even jeopardizing your mortgage approval – keep these important “don’ts” in mind:

1. Don’t make big purchases before closing

Hold off on buying furniture, appliances or a new car until after closing. Your lender will do a final check on your credit and finances, and large purchases could raise red flags or affect your debt-to-income ratio.

2. Don’t move large sums of money without explanation

Avoid making large withdrawals or deposits before closing. If a financial move is necessary, talk to your lender first – they’ll let you know what documentation is needed to keep your loan on track.

3. Don’t change jobs (if possible)

Switching employment before closing can affect your loan eligibility. If you’re planning a job change, consult your lender to understand how it might impact your approval.

4. Don’t rate shop over a long period

When comparing lenders, try to have all credit inquiries completed within a short timeframe – ideally within 14 days. This helps ensure multiple credit checks are treated as a single inquiry, minimizing the hit to your credit score.

5. Don’t miss payments

Keep making all your monthly payments on time – even on accounts you plan to close. A late payment could hurt your credit and jeopardize your ability to qualify for a mortgage.

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