Buying a Home While Getting a Mortgage: What NOT to Do
You’ve been preapproved.
You’ve found a house.
Your offer was accepted.
You’re excited.
And you’re probably already thinking about furniture, paint colors and where you’re going to put the TV.
I get it.
But before you start spending money, there’s something you need to understand:
Your mortgage isn’t finished yet.
Your lender still has work to do.
Your financial situation may continue to be reviewed throughout the loan process.
So for now, your best strategy is simple:
Keep your financial life boring.
DON’T Buy a New Car
I know.
You need a car.
But if you’re in the middle of getting a mortgage, don’t assume it’s okay to finance a new vehicle.
A new monthly payment can affect your debt-to-income ratio and potentially your loan qualification.
Talk to your lender before making a major purchase.
DON’T Open New Credit Cards
That “we’ll give you 20% off if you open a store card” offer may sound tempting.
Don’t do it without talking to your lender.
New credit can create additional questions and potentially affect your mortgage qualification.
DON’T Make Large Purchases on Credit
New furniture.
Appliances.
Electronics.
Vacations.
Anything that creates significant new debt deserves a conversation with your lender first.
Your future house can wait.
DON’T Close Credit Accounts Without Asking
You might think:
“I’m cleaning up my credit before closing.”
That sounds responsible.
But changing your credit profile during the mortgage process can create complications.
Talk to your lender before closing accounts or making significant changes.
DON’T Move Large Amounts of Money Without Understanding the Documentation
Maybe your parents are giving you money.
Maybe you’re transferring money between accounts.
Maybe you’re selling something.
Maybe you received a large gift.
Your lender may need documentation explaining where money came from.
Don’t move large sums around and assume nobody will ask.
Ask your lender first.
DON’T Deposit Large Amounts of Cash Without Explaining It
Cash deposits can create questions about the source of the funds.
If you’re receiving money or moving funds, ask your lender how they want it documented.
DON’T Change Jobs Without Talking to Your Lender
A job change can affect your mortgage qualification depending on the circumstances.
Maybe the new job pays more.
Maybe it’s a promotion.
Maybe it’s a great opportunity.
Still:
Talk to your lender before making the change if you can.
DON’T Become Self-Employed Without Understanding the Consequences
If you’re considering a major change in how you’re paid or how you earn income, talk to your lender first.
Mortgage underwriting looks at income differently depending on the circumstances.
Don’t assume a change that seems financially positive to you will be viewed the same way by the lender.
DON’T Forget About Your Existing Bills
Keep paying everything on time.
Mortgage approval doesn’t mean your other financial obligations disappear.
Your credit and financial profile still matter.
DON’T Co-Sign for Someone Else
Your friend needs help buying a car.
Your child wants to finance something.
Your family member needs a credit card.
You want to help.
But adding another financial obligation while you’re getting a mortgage can create problems.
Talk to your lender before co-signing anything.
DON’T Assume Your Preapproval Is a Guarantee
This is one of the biggest misunderstandings.
A preapproval means your lender has reviewed certain information and believes you may qualify subject to additional requirements and verification.
It is not the same as final loan approval.
Your lender will continue working through the loan process.
DON’T Ignore Your Lender’s Requests
If your lender asks for documentation, send it.
If they ask for an explanation, provide it.
If they ask a question, answer it.
And if you don’t understand what they want, ask.
Don’t disappear.
DON’T Make Big Financial Decisions Based on Something You Saw on TikTok
Seriously.
Mortgage advice online can be wildly generalized.
Your loan is specific to you.
Your lender knows your financial circumstances and loan program.
Ask them.
And Please Don’t Hide Something From Your Lender
If something changes, tell them.
Trying to hide a financial change usually creates a bigger problem than simply addressing it.
Your lender would rather know early.
What SHOULD You Do?
Keep doing the boring stuff.
Pay your bills.
Keep your income stable.
Keep your credit stable.
Keep your finances organized.
Respond to your lender.
Ask before making major changes.
That’s it.
What About Buying Furniture?
You can dream.
You can shop.
You can make a Pinterest board.
You can measure the living room.
But before you finance that gorgeous sectional, ask your lender.
Because right now, your mortgage comes first.
The Bottom Line
You’ve made it this far.
Don’t accidentally create a mortgage problem because you couldn’t wait another few weeks to buy a car or open a furniture account.
Your new house is almost yours.
Keep your finances steady until the transaction is complete and your lender tells you you’re clear to move forward.
Have a Question?
Buying a home comes with a lot of questions. You don’t have to figure everything out on your own.
Have a question about something you read here? Want to talk through your situation? Or just not sure what your next step should be?
I’m happy to help.
Schedule a Time to Talk With Karyn
No pressure. No obligation. Just straight answers.
Prefer to just send me a question?