What Not to Do Before Closing on a House
Between your accepted offer and closing day, avoid anything that changes your credit, debts, income, job or bank accounts without talking to your loan officer first. That means no new credit cards or financing, no job changes, no unexplained deposits or large transfers, no missed payments, and no spending the money you need for closing. Lenders keep verifying your file until the loan funds, so a change during this window can delay closing or even change your approval.
Most of these problems are easy to avoid once you know what lenders check and when. Here's what to hold off on, why it matters, and what to do instead.
I'm Paul Mattos, a mortgage broker with Refine Mortgage, licensed in North Carolina and South Carolina. If you're earlier in the process, start with my guide to the biggest mistakes first-time homebuyers make.
Why the Weeks Before Closing Matter
A pre-approval is based on the information reviewed when it was issued. After you go under contract, the loan goes through underwriting, and many items are checked again before closing:
Credit: many lenders monitor or re-check your credit for new accounts, inquiries and late payments
Employment: lenders usually re-verify your job shortly before closing, often within days of the closing date for salaried borrowers
Assets: updated bank statements may be requested, and new deposits may need to be explained
The property: appraisal, title, insurance and, in some cases, repairs
If something changes, underwriting has to re-review it. The earlier your loan team knows, the more options there are.
1. Don't Open New Credit or Finance Anything
Avoid new credit cards, store cards, "buy now, pay later" plans, car loans, and financing for furniture or appliances until after closing. A new account can lower your score, add a monthly payment to your debt-to-income ratio (DTI) and trigger new documentation requests. Even a small new payment can matter if your DTI is close to the limit.
The furniture can wait a few weeks. If you need to make a purchase, ask your loan officer first.
2. Don't Change Jobs or Pay Structure Without Talking to Your Lender
A new job, even one that pays more, can change how your income is calculated. Moving from salary to commission, from W-2 to 1099, or into a new line of work can be especially significant. See how commission income is calculated for why pay structure matters.
If a job change is already planned, tell your loan officer before you accept. Sometimes it can be documented with an offer letter. See getting a mortgage with a new job offer letter.
3. Don't Make Unexplained Deposits or Large Transfers
Underwriters need to know where your down payment and closing funds came from. Large deposits that aren't from your regular paycheck usually need a paper trail. For conventional loans, Fannie Mae generally treats a single deposit larger than 50% of your monthly qualifying income as a large deposit that must be documented.
What to do instead:
Keep funds where they are unless your loan officer asks you to move them.
Avoid cash deposits, which are hard to source.
Document gift funds the right way. Talk to your loan officer before money from family moves, since each program has its own gift rules.
Keep records of anything you sell, such as a car, along with the bill of sale and deposit.
4. Don't Miss or Pay Late on Any Bill
A late payment on a credit card, car loan or student loan during the process can lower your score and raise questions in underwriting. Set up autopay if it helps. If you have a medical bill or collection you're unsure about, ask before paying it off, since paying certain accounts can affect your credit report differently than you expect.
5. Don't Spend Your Closing Money
You'll need funds for your down payment, closing costs and prepaid items like taxes and insurance, and some loans require reserves left over after closing. Large purchases, vacations or big moving expenses before closing can leave you short.
In North Carolina, you've usually already paid a due diligence fee and earnest money. Those amounts are typically credited toward your purchase at closing, but you still need the rest of your cash to close. Keep the full amount available until you sign.
6. Don't Close, Open or Switch Bank Accounts
Moving everything to a new bank or closing the account your statements came from can mean new statements, new sourcing and extra time. Wait until after closing to reorganize your accounts.
7. Don't Co-Sign for Anyone
Co-signing a loan or lease for a family member adds that debt to your profile, even if you never make a payment. It can change your DTI and your approval.
8. Don't Ignore Requests From Your Loan Team
Underwriting conditions are normal. Slow responses are one of the most common reasons closings get pushed back. Send documents quickly, completely and in the format requested, such as all pages of a bank statement. If you don't understand a request, ask. My guide to what documents you need for a mortgage lists the common ones.
9. Don't Let Homeowners Insurance Become an Afterthought
Your lender needs proof of homeowners insurance before closing. Shop early, especially for older homes or homes with roof or other condition issues, which can be harder to insure. Insurance premiums are part of your payment, so a quote that comes in higher than expected can affect your numbers.
10. Don't Skip Reviewing Your Closing Disclosure
You'll receive a Closing Disclosure at least three business days before closing. Compare it with your Loan Estimate: loan amount, interest rate, monthly payment and cash to close. Ask about anything that changed. The Consumer Financial Protection Bureau has a guide to the Closing Disclosure.
11. Don't Wire Money Without Verifying the Instructions
Wire fraud is a real risk in real estate. Criminals send fake emails that look like they're from your closing attorney, title company or agent, with new wiring instructions. Before you wire any money, call the closing attorney or title company at a phone number you've verified independently, not one from the email, and confirm the instructions. Be especially cautious of any last-minute change.
12. Don't Assume Everything Is Final Until You Sign
Even after you're "clear to close," your loan can still be affected by changes in your credit, income or assets until it funds. Keep everything steady until you have the keys.
What to Do Instead
Tell your loan officer before any financial change, even if it seems small.
Keep paying everything on time and keep your balances steady.
Save copies of pay stubs and bank statements as they come in.
Respond to requests the same day when you can.
Line up insurance early and review your Closing Disclosure carefully.
Verify wiring instructions by phone before sending money.
How I Help Buyers Get to Closing
I review your income, assets and credit before issuing a pre-approval, so fewer surprises come up in underwriting. Before you make an offer, I prepare a Total Cost Analysis for that specific home, showing the payment and cash to close. Then I keep you updated through underwriting and closing, and I'm glad to talk through any change before you make it.
To strengthen your file before you shop, see my guide to getting pre-approved in Charlotte and what credit score you need. You can read what past clients say on my reviews page.
Before Closing FAQs
Can I use my credit card before closing?
Yes, normal use is generally fine if you keep balances in your usual range and pay on time. Avoid running up large balances or opening new cards.
Do lenders check credit again before closing?
Many do. Lenders may use credit monitoring or pull a new report to check for new debts, inquiries or late payments before the loan funds.
Can I change jobs before closing?
Talk to your loan officer before accepting. Some changes can be documented without a problem, while others may require more time or a different approach.
Can I buy furniture before closing?
It's best to wait. If you must buy something, pay cash only if it doesn't reduce the funds you need to close, and ask your loan officer first. Avoid financing it.
What happens if something changes before closing?
Tell your loan team right away. Many changes can be worked through with documentation, but they can take time, so the sooner the better.
Questions Before You Close?
If you're under contract or getting ready to buy in North Carolina or South Carolina and want to talk through a change before you make it, I'm glad to help. We can talk by phone or video.
Schedule a mortgage consultation or start your mortgage application.
Paul Mattos Mortgage Broker | Refine Mortgage Carolina Home Financing NMLS# 2339069 | Licensed in NC and SC Call or text: 980-221-4959 Email: paulm@refinemortgage.net
Refine Mortgage Inc. | NMLS# 2417960 | Equal Housing Lender. This article provides general educational information and is not a commitment to lend, a rate quote, or an offer of specific credit terms. Verification requirements vary by loan program and lender. Approval, pricing, and program availability depend on credit, income, assets, property, appraisal, and underwriting requirements. Not all applicants will qualify.
