What Not To Do Before Closing

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You found the home of your dreams. You got pre-approved for a mortgage. A closing date is set, and you’re close to getting those keys. You might be thinking about buying new furniture, or maybe you want to settle some old debts before you have a monthly mortgage payment.

Wait! Be careful with your finances. Until you sign that final paperwork at the closing, your loan isn’t guaranteed. Here are 5 things you should avoid doing:

  1. Don’t change jobs

You’ve already given your lender pay stubs and documentation from your current job. If you take a new job or even if you get a raise, all the paperwork will need to be submitted again. It could also send a message to your lender that you jump jobs a lot and aren’t a good risk.

  1. Don’t apply for new credit (or go on a spending spree)

Adding another credit card or burning a hole in the ones you’ve already told your lender about can impact whether you get that final mortgage, and don’t forget the importance of debt-to-income ratio and credit scores. A new credit card, even if the balance is zero, means there is the potential for debt.

  1. Don’t miss loan or credit card payments

Pay your bills and pay them on time. You don’t want anything to impact your credit score.

  1. Don’t buy a new car (or make other large purchases)

Adding another loan increases your debt. Lenders want to be sure you can pay your monthly mortgage. Adding another monthly loan payment erodes a lender’s confidence that you are a good risk.

  1. Don’t make large deposits

You may be asking yourself why a lender would care about this. Although a large deposit means you have some money coming in, the problem is that the lender doesn’t know where it came from. If a family member loans you money or you sell something of value to cover closing costs, let your lender know so it doesn’t throw up any red flags.


You can find more helpful housing tips in our Homebuyer’s Guide or by contacting one of our loan officers today. We’re standing by to help!

Trey started in the mortgage industry in 2009 helping grow a regional lender with 150 employees to one of the nation’s 10 largest retail mortgage lenders. In this position Trey lead marketing technology innovation for sales enablement and the digital borrower experience for borrowers, loan officers and real estate agents. He joined Wyndham Capital in October 2019 to lead Marketing. His strategy of developing emotionally engaging content, tools and applications for loan officers, marketing automation and unique branding has delivered remarkable results. Since starting at Wyndham Capital, Trey has grown the marketing pillar into an internal agency focusing on three core marketing practices: brand marketing, digital marketing, and sales enablement. Under Trey’s guidance, Wyndham Capital works toward being known as the prototype for the future modern lender.

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