Leave a Message

Thank you for your message. We will be in touch with you shortly.

Buying a home and applying for a mortgage?

Buying a home and applying for a mortgage?

Applying For a Mortgage? Here’s What You Should Avoid Once You Do.

While it’s exciting to start thinking about moving in and decorating after you’ve applied for your mortgage, there are some key things to keep in mind before you close. Here’s a list of things you may not realize you need to avoid after applying for your home loan.

Don’t Deposit Large Sums of Cash

Lenders need to source your money, and cash isn’t easily traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer.

Don’t Make Any Large Purchases

It’s not just home-related purchases that could disqualify you from your loan. Any large purchases can be red flags for lenders. People with new debt have higher debt-to-income ratios (how much debt you have compared to your monthly income). Since higher ratios make for riskier loans, borrowers may no longer qualify for their mortgage. Resist the temptation to make any large purchases, even for furniture or appliances.

Don’t Cosign Loans for Anyone

When you cosign for a loan, you’re making yourself accountable for that loan’s success and repayment. With that obligation comes higher debt-to-income ratios as well. Even if you promise you won’t be the one making the payments, your lender will have to count the payments against you.

Don’t Switch Bank Accounts

Lenders need to source and track your assets. That task is much easier when there’s consistency among your accounts. Before you transfer any money, speak with your loan officer.

Don’t Apply for New Credit

It doesn’t matter whether it’s a new credit card or a new car, when you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), it will have an impact on your FICO® score. Lower credit scores can determine your interest rate and possibly even your eligibility for approval.

Don’t Close Any Accounts

Many buyers believe having less available credit makes them less risky and more likely to be approved. This isn’t true. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both of those aspects of your score.

Do Discuss Changes with Your Lender

Be upfront about any changes that occur or you’re expecting to occur when talking with your lender. Blips in income, assets or credit should be reviewed and executed in a way that ensures your home loan can still be approved. If your job or employment status has changed recently, share that with your lender as well. Ultimately, it’s best to fully disclose and discuss your intentions with your loan officer before you do anything financial in nature.

Bottom Line

You want your home purchase to go as smoothly as possible. Remember, before you make any large purchases, move your money around, or make major life changes, be sure to consult your lender – someone who’s qualified to explain how your financial decisions may impact your home loan.

Recent Blog Posts

Stay up to date on the latest real estate trends.

home selling strategies

If I Were Selling My Home Today, Here’s What I’d Do First

Real insight from a broker who treats every listing like it’s her own

A modern house with a large driveway, garage door, and trees in front of it.

2025 Housing Market

Conejo Valley Housing Market Update

Q2 2025: Inventory Surges, Luxury Sales Lead

An aerial view of a neighborhood of homes built on a hillside.

AB 130

New California Law Caps HOA Fines with AB 130

What AB 130 Means for Homeowners in HOA Communities

2025 Housing Market

Is It Still a Good Time To Sell Your Home?

The Answer Might Surprise You

A backyard oasis with a refreshing pool surrounded by a spacious wooden deck

2025 Housing Market

What Every Homeowner in Westlake Village (and Nearby) Needs To Know About Today’s Shifting Market

Inventory is rising, buyers have more choices, and strategic sellers still hold the upper hand — here’s what’s changing across Westlake Village, Thousand Oaks, and the… Read more

senior homeowners

HOA Fees: What Every Homebuyer in Conejo Valley Needs To Know

The perks, the costs, and the big picture—how HOA communities in Westlake Village, Thousand Oaks, and beyond can impact your next home purchase.

preparing your home to sell

The Smart Homeowner’s Guide to Value-Boosting Projects in Westlake Village and Beyond

Know which home updates pay off — and which ones to skip — in the Conejo Valley and Ventura County market

westlake village real estate

Same Home. Different Outcome: The Real Reason Some Sellers Win in Today’s Market

A Look at the Westlake Village Real Estate Market and Why Preparation and Exposure Are Everything

55 + communities

The Offer Isn’t Always the Opportunity: What 55+ Homeowners Need to Know Before Selling

Why Second Opinions, Market Exposure, and Transparent Representation Matter More Than Ever — Especially in Westlake Village, Thousand Oaks & Surrounding Communities

Let’s Talk

You’ve got questions and we can’t wait to answer them.

Follow Us on Instagram