From Pre-Approval to Settlement
Once you get a pre-approval, it may feel like you can relax, but getting pre-approved isn't the finish line, it's a snapshot in time of your financial picture, and it's important for that to stay the same until you buy your home. Most lenders re-check your credit, income, and bank statements again right before closing, and anything that changes your financial picture in between can delay or even cost you the loan. The rule is simple: once you're pre-approved and under contract, don't do anything that changes how you look on paper without talking to your lender first, not until you have the keys in hand.
10 Things Not to Do
Loan officers see the same handful of mistakes derail closings over and over. None of these are complicated. They just require patience for a few weeks.
No quitting, no switching to self-employed or 1099 work, no accepting new positions, and no unexplained gaps or drops in income. Even a "better" job can require re-underwriting your entire file from scratch.
No new car, furniture, appliances on credit, or new credit cards, even at 0% interest or to get a discount at checkout. New debt or new accounts can cause the lender to deny your loan because you no longer qualify.
Keep every account current and keep existing credit card balances where they were when you got pre-approved. A higher account balance can lower your score enough to matter.
Large, unexplained deposits or transfers, even a job bonus, a gift, or a payback from a friend, can stall your loan approval until you can document exactly where the money came from. If a family member wants to help with your home purchase, there are specific procedures to follow. Ask your lender how to handle this generosity the right way.
Your lender is tracking specific accounts and balances. Switching banks or consolidating accounts mid-process just creates new paperwork and new questions, and closing an account can lower your credit score even though that seems backwards. Credit scores don't always make sense.
Co-signing a car, apartment, or other loan for anyone adds that debt to your financial picture, even though you're not the one making the payments.
Skip the "0% off your first purchase" card at checkout. Hard inquiries raise questions and can lower your score. One exception: any number of hard credit pulls for a mortgage within a 45-day window count as a single pull, so shopping multiple lenders for your home loan is safe. (Source: Consumer Financial Protection Bureau)
The money you set aside for closing needs to stay exactly where it is, untouched, until settlement. If you need to move money between accounts, or from an investment account to your local bank, talk with your lender first about the best way and timing to do it.
Respond to document requests the same day if you can. Slow paperwork is one of the single most common reasons a closing date slips.
Many lenders re-verify credit, employment, and bank balances again immediately before closing. Keep your financial picture frozen until the day after you sign the paperwork to buy your home.
This is general guidance, not financial or lending advice. Every lender's exact requirements can differ. When in doubt about a specific purchase, transfer, or life change, call your loan officer before you do it, not after.
Loan officers would much rather get a two-minute phone call asking "can I do this?" than find out about a new car loan or a mystery deposit during final underwriting. A quick question almost never causes a problem. A surprise almost always does.
If anything about your financial picture is about to change between now and closing (job, income, debt, bank accounts, or a large deposit), check with your lender first.
This is educational information, not financial or legal advice. Every loan program and lender has its own specific underwriting requirements. Confirm anything time-sensitive directly with your loan officer.
Not Sure If Something Is Safe to Do?
If you're mid-contract and something's about to change (a job offer, a big purchase, a large deposit), I can help you think through the timing and point you to your loan officer before it becomes a problem instead of after.