After Mortgage Application

Things to Avoid After Applying for a Mortgage

Congratulations! You’ve found a home to buy and have applied for a mortgage! You’re undoubtedly excited about the opportunity to decorate your new home, but before you make any large purchases, move your money around, or make any big-time life changes, consult your loan officer – someone who will be able to tell you how your decisions will impact your home loan.

Below is a list of Things You Shouldn’t Do After Applying for a Mortgage. Some may seem obvious, but some may not.

1. Don’t Change Jobs or the Way You Are Paid at Your Job. Your loan officer must be able to track the source and amount of your annual income. If possible, you’ll want to avoid changing from salary to commission or becoming self-employed during this time as well.

2. Don’t Deposit Cash into Your Bank Accounts. Lenders need to source your money, and cash is not really traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer.

3. Don’t Make Any Large Purchases Like a New Car or Furniture for Your New Home. New debt comes with it, including new monthly obligations. New obligations create new qualifications. People with new debt have higher debt to income ratios…higher ratios make for riskier loans…and sometimes qualified borrowers no longer qualify.

4. Don’t Co-Sign Other Loans for Anyone. When you co-sign, you are obligated. As we mentioned, with that obligation comes higher ratios as well. Even if you swear you will not be the one making the payments, your lender will have to count the payments against you.

5. Don’t Change Bank Accounts. Remember, lenders need to source and track assets. That task is significantly easier when there is consistency among your accounts. Before you even transfer any money, talk to your loan officer.

6. Don’t Apply for New Credit. 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.), your FICO® score will be affected. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.

7. Don’t Close Any Credit Accounts. Many clients erroneously believe that having less available credit makes them less risky and more likely to be approved. Wrong. 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 determinants in your score.

Bottom Line

Any blip in income, assets, or credit should be reviewed and executed in a way that ensures your home loan can still be approved. The best advice is to fully disclose and discuss your plans with your loan officer before you do anything financial in nature. They are there to guide you through the process.

Read the Original Article Here: Things to Avoid After Applying for a Mortgage

About the Author

FD Bell is a founding partner and Broker of Southeast Land & Homes - serving land, commercial, and residential clients. Contributing years of experience in real estate and commercial lending to the success of her clients.


FD's real estate career began in the late ‘90’s representing clients in commercial real estate with acquisition and disposition of properties in Central Florida. She has also had the opportunity to expand her real estate knowledge into commercial lending as a representative for a Central FL CDC, CIT Group (a Commercial Lender), as well as a midwest banking group.


FD has earned her Broker’s license in multiple states. She has held the distinguished honor of being 2016 Past President of Georgia Chapter REALTORS® Land Institute.


She also holds the following professional memberships:

  • East Metro Board of REALTORS® / Director 2018-2020
  • Georgia Association REALTORS®
  • National Association of REALTORS® / Professional Development Committee
  • REALTORS® Land Institute / Education Committee / Governmental Affairs Committee
  • GA Chapter REALTORS® Land Institute / 2016 Past President / Director 2017-2018 / Administrator 2019-2020
  • Academy of Land Specialists / Director
  • Georgia MLS - Member 

The love of working on the land follows FD home to her and her husband’s hobby farm, located comfortably south of Atlanta, where they always have a DIY project, gardens, or farm family critters to keep them busy.