What NOT To Do During the Mortgage Loan Process

Young female homebuyer shocked after making a mistake during the mortgage loan process.

Your home buying checklist has helped you find the perfect home for your family, but just as important is a list of what not to do during the mortgage loan process. A few simple “Don’ts” can help you avoid common mortgage mistakes leading up to the closing. Remember that even though you have your mortgage pre-approval in hand, your lender will be monitoring your credit and finances up until closing.

Here are five mistakes to avoid during the mortgage loan process:

1. Don’t make large purchases

Even after you are pre-approved for a mortgage, your lender will run your financials two or three more times before closing. This is not the time to buy or lease a new car, take out a loan for improvements on your new home, or make any other large purchases.

2. Don’t change jobs

This includes changing your employment status, for instance going from full-time to part-time employment. Lenders like stability, so wait until after your closing to make any professional changes.

3. Don’t make large deposits – unless you can document it

Similar to avoiding new debt while waiting for your mortgage loan to close, avoid large deposits that are difficult to track. Keep your deposits separate and small and be able to verify all deposits, and avoid depositing cash. In the event you have made or need to make a larger, out-of-the-ordinary deposit, be sure you have a paper trail (not a cash transaction) and it’s not a “red flag”. Examples would be an annual bonus from work, moving money from an investment account, etc.

4. Don’t take on new credit

Your credit score can impact how your lender evaluates you for a mortgage loan, and applying for new credit, or even co-signing for someone else can negatively impact your credit score. Resist the temptation to open new credit cards until after your closing. If it is necessary to open a new account, be sure to communicate with your loan officer to ensure it doesn’t cause any problems with your mortgage loan process.

5. Don’t wait to get your cash

If you need to sell investments in order to have the necessary funds available at closing, don’t wait. The market could move against you, leaving you short of cash to close the transaction. Be sure to document any investments that you do sell.

Bonus Don’t: Probably the most important “Don’t” … don’t be afraid to ask questions! If there is any doubt what you should or should not do as you wait for closing on your mortgage loan, ask.


At Priority Mortgage, we believe that the mortgage loan process should be easy and stress-free. If you need assistance, a mortgage expert who can answer questions is just a phone call away. For more information about the mortgage process or to get started, contact us today.