Warning - read before you close
10 Things NOT To Do Before Closing
Once your loan is in underwriting, your financial picture is locked in. Changes between contract and closing can trigger a re-underwrite, delay your closing, or - in serious cases - cause a denial.
Contract signed
Underwriting
Conditions cleared
Closing day
This list applies for the whole window - not just the final week. The earlier a change happens, the more likely it still gets caught.
1
Do not finance a new vehicle
Raises your monthly obligations, increases your debt-to-income ratio, and triggers a hard inquiry - any of which can push you out of program guidelines.
2
Do not open new credit cards
Lowers average credit age and creates a hard inquiry. Underwriters view new credit as a signal of increased debt load since your application.
3
Do not finance furniture or appliances
Retail financing - even "no interest for 12 months" - appears as new debt and adds a monthly payment obligation that underwriting counts against you.
4
Do not change jobs without calling us first
Employment is verified at closing. Moving from salaried to commission, contract, or self-employed mid-process can trigger a full income re-evaluation.
5
Do not make large undocumented deposits
Underwriters must source every closing dollar. Cash deposits, transfers from unlinked accounts, and gift funds all require written documentation and paper trails.
6
Do not co-sign anyone else's loan
Makes you legally responsible for that debt. Even if you never make a payment, it appears on your credit report and counts against your debt-to-income ratio.
7
Do not close existing credit accounts
Reduces available credit, raises utilization, and can lower your score - the opposite of what you want in the final stretch before closing.
8
Do not miss any payments
One 30-day late payment during the contract period can drop your score and trigger a new review. Automate minimums on every account so nothing slips.
9
Do not move money without a paper trail
Transfers between accounts - especially from retirement, investment, or overseas accounts - require source documentation. Undocumented transfers can hold up closing.
10
Do not ignore emails from your lender
Conditions have deadlines. A missed request stalls your file, can push the closing date, and risks expiring your rate lock.
Safe zone: things that are completely fine
- Paying down existing balances
- Keeping current accounts open and active
- Scheduling utilities to start at your new address
- Using gift funds - just document them properly with us
- Depositing your paycheck (regular employment income is expected)
- Calling or emailing us with any question - always the right move
Not sure if something is OK? Ask first.
Scan the code or reach out before making any financial decision between contract and closing. A quick call can save your transaction.
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This material is educational only and is not a commitment to lend, an offer of credit, or a fee quote; all
loans are subject to underwriting approval. Loan-specific requirements vary by program, lender, and borrower
profile; always consult your loan officer before making any financial decision during the contract period.
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