What Not to Do Before Closing on Your Mortgage: 8 Mistakes That Can Delay or Derail Your Loan

Getting your offer accepted feels like the finish line, but your loan isn't final until you close. Lenders can pull your credit again and review your accounts right before closing. A few ordinary decisions in that window can raise your rate, shrink your approval, or delay the closing date.

The good news is that these problems are easy to avoid when you know about them. Here are the eight we see most often, and what to do instead.

The 8 Mistakes to Avoid

1. Opening or Applying for New Credit

A new credit card, car loan, or store financing adds an inquiry and a new payment. That can lower your score and raise your debt-to-income ratio. Wait until after closing, even for furniture deals that look tempting.

2. Making a Large Purchase on Credit

Buying appliances, a car, or a full set of furniture on a card can push your balances up and your score down. Save the shopping for after you have the keys.

3. Changing Jobs or Income Type

Lenders verify employment, often again shortly before closing. A move to a new employer, a switch from salary to commission, or leaving to start a business can change how your income is counted. If a change is unavoidable, tell your loan officer first.

4. Moving Money Around Without a Paper Trail

Large deposits that you can't source can stall underwriting. Moving funds between accounts is fine, but keep statements so each transfer is easy to document.

5. Missing a Payment or Letting a Balance Climb

A late payment on any account can hurt your score fast. Set up autopay for at least the minimums while your loan is in process.

6. Co-Signing for Someone Else

When you co-sign, the debt typically counts as yours on your credit report. That can change your qualifying ratios, even if the other person makes every payment.

7. Closing or Consolidating Old Accounts

Closing a card can lower your available credit and raise your utilization. Paying off a collection or consolidating debt can also reshuffle your credit. Ask your loan officer before you do either.

8. Going Quiet on Your Lender

Missed document requests are one of the most common reasons closings slip. Respond to requests quickly, even if the answer is just that you're gathering the paperwork.

What You Should Do Instead

• Keep paying every bill on time, as you have been.
• Keep your funds for closing in the same accounts that were verified.
• Respond to every document request within a day.
• Lock in your homeowners insurance and schedule your move-in after closing, not before.

We're With You Until the Keys Are in Your Hand

At United Mortgage Plus, we stay in touch from application to closing and beyond, at no cost to you. If you have a question about anything on this list, reach out and we'll walk through it together before it becomes a problem.