Once you have a pre-approval letter, it is tempting to relax. The hard part feels done. But your lender will review your finances again before closing, often including a fresh look at your credit and employment. Changes in the weeks between pre-approval and closing can affect your loan, so it pays to know which moves to avoid.
A new credit card, store account or auto loan adds a monthly payment and can change your debt-to-income ratio, which is a key part of your approval. New applications can also cause hard inquiries that may lower your score. Even a zero-interest furniture offer can create problems. Wait until after closing to open anything new.
Buying a car, appliances or furniture before closing can reduce the cash you need for your down payment and reserves, or add debt your lender did not count on. It is natural to want to furnish your new home, but hold off until after you have the keys.
Lenders need to verify where your money comes from. Large deposits that do not match your regular income, such as cash, transfers from friends or sales of personal items, will likely need documentation and an explanation. If family is giving you money toward your purchase, ask your loan officer how to document the gift properly before the funds move.
A new job is not always a deal breaker, but it can complicate things. Moving from salary to commission, starting a business or changing fields may require additional documentation or a waiting period before that income can be counted. If a career change is on the horizon, talk with your loan officer first.
With so much going on, it is easy to overlook a bill. But a late payment just before closing can lower your score and change your loan terms. Set up automatic payments or calendar reminders until the process is finished.
Pre-approvals do not last forever. Many are valid for about 60 to 90 days, depending on the lender, because your credit and income documents need to be current. If your home search is taking longer, check in with your loan officer to refresh your pre-approval before you make an offer.
Underwriters often need one more document, a signed letter or an updated statement. Each delay can push back your closing date and, in some cases, put a rate lock at risk. Check your email and messages regularly and send requested items promptly.
Helping a friend or relative qualify for a car or apartment may seem harmless, but a co-signed debt typically counts as your obligation too. That added payment can change your debt-to-income ratio at exactly the wrong time. If someone asks, it is fine to explain that you need to wait until after your closing.
None of these rules last forever. Once you close and settle in, you are free to finance furniture, open a new card or change jobs as your life requires. The extra caution only applies during the short window while your loan is being finalized.
If you are unsure whether something could affect your loan, ask first. A quick call to your loan officer can prevent a big headache. Keep your finances steady, stay organized and keep communication open, and you will put yourself in a strong position for a smooth closing.
Want to understand what lenders look for along the way? Our loan program overview and first-time buyer guide are helpful places to start. And if you have questions at any stage, reach out to a FLO Mortgage loan officer.
A FLO Mortgage loan officer can walk through your options, run real numbers and help you choose a loan that fits.
This article is for general education and is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines and program availability. FLO Mortgage, Company NMLS #1835856. Equal Housing Opportunity.
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