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.
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.
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.
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.
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.
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.
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.
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.
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.
Stay up to date on the latest real estate trends.
home selling strategies
Real insight from a broker who treats every listing like it’s her own
2025 Housing Market
Q2 2025: Inventory Surges, Luxury Sales Lead
AB 130
What AB 130 Means for Homeowners in HOA Communities
2025 Housing Market
The Answer Might Surprise You
2025 Housing 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
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
Know which home updates pay off — and which ones to skip — in the Conejo Valley and Ventura County market
westlake village real estate
A Look at the Westlake Village Real Estate Market and Why Preparation and Exposure Are Everything
55 + communities
Why Second Opinions, Market Exposure, and Transparent Representation Matter More Than Ever — Especially in Westlake Village, Thousand Oaks & Surrounding Communities
You’ve got questions and we can’t wait to answer them.