Mortgage Process Do's and Don'ts

A common misconception: once you're pre-approved, the financial review is over. It isn't. Lenders continue to verify your income, assets, debts, and credit right up to closing — often pulling credit a second time within days of funding. A change that looks small to you can look significant to an underwriter, and a single surprise can push the closing date out or, in the worst cases, unwind the approval.

The guidance below is general consumer education based on what tends to come up most often during loan processing. Every file is different; your loan officer should be your first call when a specific situation comes up.

Don't: open new credit accounts

New credit inquiries and new accounts both affect your credit profile. A new auto loan, store card, or personal line can change your debt-to-income ratio, drop your credit score, and raise questions underwriting didn't expect to see. Wait until after closing.

Don't: close old credit accounts

The instinct to "clean up" credit by closing unused cards can backfire. Closing an account can increase your credit utilization ratio (because your total available credit drops) and shorten your average length of credit history — both of which can move your score the wrong direction.

Don't: run up existing credit card balances

Even without opening new accounts, spiking the balance on cards you already have will move your utilization number, and utilization is one of the bigger levers in a FICO score. Keep normal spending patterns through closing.

Don't: change jobs, quit, or go self-employed

Lenders verify employment and income multiple times during processing, often within days of closing. A job change — even a promotion or a higher-paying role — can trigger a fresh review of employment history, probationary periods, and income documentation. Switching from W-2 to self-employment is an even bigger disruption because self-employment income generally requires a two-year history to count.

If a job change is unavoidable, talk to your loan officer before making it final.

Don't: make large, undocumented deposits

Underwriters are required to source the funds used for down payment, closing costs, and reserves. Any large deposit that doesn't match your normal payroll pattern will get flagged with questions like: Where did this money come from? Legitimate answers are fine — you just need a paper trail.

Common examples that need documentation:

• Gift funds from a family member require a signed gift letter and proof of the giver's ability to gift
• Sale of a vehicle or asset needs a bill of sale and proof of the buyer's payment
• Tax refunds, bonuses, and reimbursements need supporting documentation
• Cash deposits are the hardest to document and are often unusable

Don't: transfer large sums between your own accounts

Moving money from savings to checking, or consolidating accounts, is normal — but during processing it creates new balances that need to be re-verified and re-sourced. If you have to move money, keep it minimal, keep records, and let your loan officer know.

Don't: make a major purchase on credit

The classic version of this is: buyer gets approved, celebrates by financing new furniture or a car, and learns at the closing table that the loan can no longer close as structured. A new monthly payment changes your debt-to-income ratio. If financing is possible, wait until after closing.

Don't: co-sign for someone else's loan

Co-signing adds a monthly obligation to your credit report even if you're not the one making the payment. Don't take on new joint obligations mid-process.

Don't: let bills go late

A single 30-day late payment on any account during processing can damage your credit score and force the underwriter to re-evaluate. Autopay on the minimums is a safe move.

Don't: go quiet on your loan officer

The single most common cause of delays is a documentation request that sits in an inbox for days. Even if the request looks redundant, treat it as urgent. Underwriting moves at the speed of the information it has.

Do: keep your paperwork organized

Most loans ask for a recurring set of documents:

• Recent pay stubs (typically the last 30 days)
• Two years of W-2s or 1099s
• Two months of bank and investment statements — all pages, including the blank ones
• Two years of tax returns (personal and business, if self-employed)
• ID — current, matching your name as it appears on the application
• Homeowners insurance quote once you're under contract
• Letters of explanation for any unusual items on credit or deposits

Keep a folder (physical or digital) of these as they come in. You'll likely be asked for updated versions as closing approaches.

Do: communicate life changes

Getting married, having a child, becoming guardian of a family member, receiving a settlement, or any other major financial or household event should be flagged to your loan officer immediately. These changes usually have an answer — but the answer is easier to find before closing than after a surprise at the settlement table.

Do: expect a final credit pull

Shortly before closing, most lenders re-pull your credit to confirm nothing has changed. Everything above — no new accounts, no new large balances, no missed payments — is specifically to keep that final check clean.

The shortest version

Between application and closing, the rule is boring but effective: change nothing about your financial life you don't have to change. Keep paying your bills on time, keep your income steady, keep your balances stable, and respond quickly when your loan officer asks for something. That's the path most loans take from application to keys.