✅ Do’s and Don’ts Before Applying for a Loan and Closing on Your New Home

Securing a mortgage and preparing for closing requires careful planning. Here are the essential steps to make sure your loan approval stays on track and your home closing goes smoothly.

✅ DO:

Maintain Stable Employment and Income
Lenders want to see job consistency. Notify your lender before changing jobs or income status.
Keep Paying Your Bills On Time
Late payments can negatively affect your credit score and delay your loan approval.
Stay in Touch with Your Lender and Justin
Respond quickly to any document requests and keep communication open.
Keep Financial Records Organized
Tax returns, pay stubs, bank statements—keep them ready and up to date.
Be Transparent with Your Lender
Share any concerns, financial changes, or unique situations early on. The more your lender knows, the better they can guide you and protect your approval.

❌ DON’T:

Don’t Make Large Purchases
Avoid buying furniture, appliances, or a new car until after closing. These can increase your debt-to-income ratio.
Don’t Apply for New Credit Cards or Loans
New credit inquiries can lower your score and affect loan approval.
Don’t Make Large Bank Deposits Without a Paper Trail
Any large or unusual deposits need to be documented. Talk to your lender first.
Don’t Co-Sign Loans for Anyone
Even if you’re helping someone else, co-signing adds to your financial liabilities.
Don’t Switch Banks or Transfer Large Sums
This could cause confusion or delay underwriting. Stick with the same accounts throughout the process.
Don’t Quit or Change Jobs Without Talking to Your Lender
Even a promotion or job transfer could complicate your mortgage process.

🏁 Final Tip:

Before you do anything that could impact your finances—even if it seems minor—check with your lender or Justin first. It’s better to ask now than risk delays or a denied loan later.