What Not to do Before, During,
and After Getting a Mortgage

When you’re preparing to get a mortgage or are already pre-approved, there are certain things you should avoid to protect your chances of successfully buying a home. One major rule is not to repeatedly pull your credit or apply for new credit. Each time you apply for a new credit card or loan, it can lower your credit score and raise concerns for your lender. Even inquiries like opening a store credit card for a discount can impact your approval process. It's best to avoid any new credit activity during this time.

Another important thing to avoid is making big purchases or taking on new debt, like buying a car or financing furniture. These types of expenses increase your debt-to-income ratio, which is a key factor lenders look at when deciding how much house you can afford. Even if the dealership promises "no payments for six months," it still shows up on your credit report and could jeopardize your loan approval.

Additionally, don’t change jobs or suddenly deposit large amounts of money into your bank account without documentation. Lenders need to see a stable employment history and a clear financial trail for the funds you’re using for your down payment and closing costs. Sudden changes or unexplained deposits can raise red flags, leading to delays or even loan denial.

Finally, avoid co-signing loans for others or making any major financial commitments while going through the mortgage process. Even though you may not be the primary borrower, lenders will factor the co-signed debt into your financial obligations. To ensure a smooth path to homeownership, keep your financial situation steady and consult with your mortgage professional before making any big moves!