Smooth sailing, right?

Yes—almost. At this time, it’s essential that you don’t make any sudden moves that would change your debt, income, or anything else related to your financial situation. It could affect your final mortgage approval. And that would be bad.

Here are a few of our top tips on how to avoid trouble and keep your mortgage financing solid before you take possession.

In all cases, don’t hesitate to reach out if you have any questions. Better to inquire now than ask forgiveness later. Lenders are typically not super forgiving.

1. Don’t buy a vehicle on credit. It will likely cause a credit report inquiry, which could affect your credit score and affect whether you still qualify for your mortgage before you take possession.
   
   
2. Don’t quit your job, change employers, or alter way you receive income. Thirty days before you take possession, your employment may be re-verified. If it changes, it could affect your mortgage approval.
   
   
3. Don’t overdo it with your credit card or lines of credit, and don’t be late on payments. Late payments affect your credit score. So does spending 70 percent of your credit limits. Don’t do this.
   
   
4. Don’t apply for a new credit card or raise your credit limit. Wait until you take possession before even thinking about it, as it may affect your credit score and cause credit inquiries.
   
   
5. Don’t co-sign a loan. It will result in credit inquiries, and may affect your credit score. Are you noticing a pattern here?
   
   
6. Don’t buy appliances or major furniture. We know you want to decorate and get your home set up soon, but big buys that cause deductions in your bank balance or inquiries on your credit report could affect your ability to maintain your mortgage standing. The sofa bed can wait a month.
   
   
7. Don’t spend cash you need for closing costs. There are several costs related to closing your home purchase, which we can discuss with you in detail if you want. It’s essential that you have those funds handy when they’re needed, plus a bit extra in case something unexpected arises.
   
   
8. Don't deposit large sums of money in your bank account. Weirdly large amounts may trigger a source verification and might require you to pony up documentation. Just wait until after possession, or make these deposits earlier (if you have the time).