Don't Do These 5 Things If You've Applied For A Mortgage

Don’t Do These 5 Things If You’ve Applied for A Mortgage


After a long time shopping for a home, you’ve finally found the perfect one. It has everything you were looking for and then some, and you’ve applied for a mortgage. Now what?

For the most part, you wait. While you wait, however, there are a few things you shouldn’t do to ensure you remain in good financial standing while your loan is in underwriting. Here are 5 things you should never do once you’ve applied for a loan. 


Until you close on your home and you have keys in hand, you need to avoid making any big purchases on credit. This includes buying a new car, furnishings for your new home, jewelry, etc. As tempting as it is to buy things for your new home, resist it as any large purchase made on credit can alter your debt-to-income ratio and potentially disqualify you for the mortgage. 


Your job history plays a big role in whether you qualify for a mortgage or not. Lenders like to see that you have a stable source of income and that you’ve had it for an extended period. 

While you’re waiting to close on your new home, avoid changing jobs and how you get paid at your job. Also, avoid becoming self-employed during this time. APPLY FOR NEW 


While you’re going through the loan process, it’s a good idea to not open any new lines of credit. The act of applying for a credit card can negatively impact your credit score, which can ultimately impact your eligibility for a mortgage. 

On that same note, avoid closing any existing lines of credit as well. Remember, your credit history is a big part of the approval process, so your lender needs to see it all. 


If you think having a lot of money in your bank account looks good to lenders, think again. Lenders like to have proof of your savings, so avoid making large cash deposits into your account during this time. 

If you must make a large deposit into your account, ask your loan officer about the best way to document it so it doesn’t look like you took out another loan to increase your savings. 


Co-signing a loan for someone else is a huge red flag to lenders because should the person you’re co-signing for not make their payments, you’ll be responsible for doing so yourself. Even if you promise you won’t ever have to make the payments, a lender may decline to approve you for a mortgage if you co-sign a loan for someone else during this time. 

Finding the home of your dreams is exciting. What comes after that – not so much. The loan process can be frustrating and confusing, but as long as you avoid doing any of the things listed above during that time, you should find yourself moving into your new dream home very soon.