7 Things Not to Do Before Closing on a Home

You’ve found the one. Your offer’s accepted. The finish line is in sight. But before you start celebrating, there’s one crucial stage where small mistakes can derail your dream home: the closing process.

Between signing the contract and getting the keys, your finances are under a microscope. Lenders will verify your credit, income, and debt one last time—and even the smallest change can raise red flags that delay or kill your loan approval.

To protect your purchase, here are 7 things you should never do before closing on a home—and what to do instead.

❌ 1. Don’t Change Jobs or Employment Status

Even if it’s a promotion, switching jobs during escrow can complicate your mortgage approval. Lenders verify your employment right before closing, and a sudden change can reset the clock on your income verification.

💡 Do this instead: If possible, wait until after closing to change jobs or start a new role. If it’s unavoidable, let your lender know immediately—they’ll need updated income documentation.

❌ 2. Don’t Make Large Purchases (Yes, Even Furniture)

That new sectional or washer-and-dryer set will look perfect in your new home—but buying them before closing can lower your available credit and raise your debt-to-income ratio.

💡 Do this instead: Hold off on any large purchases until after the ink dries. You’ll enjoy decorating even more when you know your financing is safe.

❌ 3. Don’t Open (or Close) New Credit Accounts

Every new credit application—whether it’s a store card, car loan, or credit line—involves a hard inquiry that can drop your credit score temporarily. Closing old accounts can also hurt your “credit age” and utilization ratio.

💡 Do this instead: Keep your existing accounts steady. No new cards, no account closures—just maintain your normal habits until after closing.

❌ 4. Don’t Miss Any Payments

It sounds obvious, but it’s easy to overlook a bill during the moving chaos. Even one late payment—on a credit card, student loan, or car—can hurt your score and jeopardize your loan approval.

💡 Do this instead: Set reminders or autopay for all bills during the closing process. Consistency is your best friend right now.

❌ 5. Don’t Deposit Large, Unverified Sums

Lenders closely track your bank activity for “sourced and seasoned” funds. A sudden large deposit—like cash from a friend or side job—can trigger questions or delay underwriting while the source is verified.

💡 Do this instead: Keep all deposits traceable (paychecks, verified transfers, etc.). If you receive a gift, document it properly with a gift letter your lender can approve.

❌ 6. Don’t Co-Sign for Anyone Else

Even if it’s helping a loved one buy a car or open a loan, co-signing creates a new financial obligation that counts against your debt ratio. That can make your mortgage look riskier and could impact final approval.

💡 Do this instead: Wait until after closing to help others financially. Right now, your own transaction needs to stay spotless.

❌ 7. Don’t Ignore Your Lender’s Requests

During escrow, your lender might request updated pay stubs, bank statements, or additional verification. Delays in providing these documents can postpone your closing date—or even cause your rate lock to expire.

💡 Do this instead: Respond promptly to all lender communications. Keep your documentation organized and digital copies ready to send.

✅ The Bottom Line

Buying a home is exciting—but it’s also a delicate financial dance. Staying consistent with your income, credit, and spending until you get your keys ensures that nothing stands between you and your new front door.

A good rule of thumb? If you wouldn’t do it while your lender’s watching, don’t do it until after closing.

🏠 Ready to Close Smoothly and Confidently?

The Espinosa Group guides buyers through every step—from offer to closing day—with clear communication, expert strategy, and local insight. We make sure you know exactly what to do (and not do) so your home purchase stays on track.

📞 Call/Text: +1 (480) 584-7456
🌐 www.theespinosagroup.us

Smart moves. Smooth closings. Confident homeowners.