Buying a home is an exciting milestone — but even small financial moves can affect your mortgage approval. Before you close on your new home in Carmel, Indianapolis, or anywhere in Central Indiana, make sure you avoid these common pitfalls.
1. Don’t Make Major Purchases
Hold off on buying furniture, appliances, or a new car until after closing. Big purchases can change your credit score and debt-to-income ratio.
2. Don’t Open or Close Credit Accounts
Opening or closing credit cards can impact your credit utilization, which may lower your score.
3. Don’t Change Jobs (If You Can Help It)
Lenders look for stable employment. If you must change jobs, talk to your lender first.
4. Don’t Miss Any Bill Payments
Even one late payment can lower your credit score. Stay consistent with all bills until closing.
5. Don’t Make Large Bank Deposits Without Documentation
Unexplained deposits can raise red flags. Keep records or talk with your lender before transferring funds.
6. Don’t Co-Sign for Anyone Else’s Loan
It increases your debt load and can affect your mortgage approval.
7. Don’t Ignore Lender Requests
Be prompt when providing documents. Delays can slow down your closing timeline.
8. Don’t Assume Pre-Approval = Final Approval
Your mortgage isn’t finalized until underwriting is complete — stay financially steady.
9. Don’t Move Large Sums Between Accounts
Transfers can make it harder for lenders to verify your financial stability.
10. Don’t Make Sudden Lifestyle Changes
Keep your finances predictable. This ensures your closing goes as smoothly as possible.
Final Tip
Stay in close communication with your lender and Realtor. If you’re unsure whether something might affect your loan, ask before taking action — that’s what we’re here for!
