Most buyers think the hard part is over once they have a pre-approval letter in hand.
It isn’t.
Pre-approval is a snapshot. Your lender pulled your credit, looked at your income, checked your assets, and said “based on what we see today, you’re good for X.” But between that letter and your actual closing day — which can be 30, 45, sometimes 60+ days — they’re going to check all of it again.
That second check is called the final underwriting review, and it happens within a few days of your closing date. If anything has changed since pre-approval, it can blow up the loan. Sometimes catastrophically.
I’ve watched buyers lose homes in the final week because they did something completely normal that they didn’t realize would be a problem. So here’s the list. Save it. Send it to anyone you know who’s house shopping.
1. Opening a New Credit Card — Even at a Furniture Store
You’re about to close on the house. The kitchen needs appliances. The bedroom is empty. You walk into a furniture store and the salesperson offers you 18 months no-interest financing.
Don’t do it.
That financing offer is a hard credit pull and a new credit account. Both show up immediately on your credit report. The hard pull drops your score 5-15 points. The new account changes your credit utilization, your average account age, and your debt-to-income ratio. All three matter to the lender’s final approval.
Even if your score only drops a few points, that might be enough to push you into a worse rate tier — meaning a higher rate for the next 30 years on the loan you’re about to close. And if it pushes your DTI over the program’s limit, the loan can be denied outright.
Wait until after closing. Buy the furniture with cash, or open the financing account after the keys are in your hand.
2. Changing Jobs (Especially to Commission or Self-Employment)
Lenders need stable, documented, predictable income. A new job in the same industry at higher salary might be okay — but it requires re-verification, new pay stubs (which you won’t have yet), and underwriter re-review. That usually delays closing by 2-4 weeks.
A change to commission-based compensation, 1099 contractor status, or self-employment is much worse. Most loan programs require two years of documented commission or self-employment income before they’ll count it. If you make that switch mid-transaction, your provable income drops to zero for qualifying purposes — and the loan dies.
If a job change is unavoidable, talk to your loan officer the day you get the offer. Sometimes we can restructure. Sometimes we can’t. Either way, surprise is the enemy.
3. Making Large Unexplained Cash Deposits
This one trips up almost every first-time buyer.
The lender will pull your bank statements one more time before closing. Any deposit that isn’t a regular paycheck — especially cash — has to be sourced and documented. Where did it come from? Why is it there? Can you prove it?
- Selling stuff on Facebook Marketplace? Document the listing and the payment.
- Cash gift from family? You need a signed gift letter from the donor, proof of their ability to gift, and proof of transfer.
- Sold a car? Bill of sale and matching deposit.
- Got paid back by a friend? They need to confirm in writing.
If you can’t source it, the lender removes it from your asset total. If that pushes your reserves below the program requirement, the loan denies.
Best practice: from pre-approval to closing, treat your bank account like the IRS is auditing you. Every deposit should be explainable on a single line.
4. Co-Signing Someone Else’s Loan
Your daughter wants to buy a car. Your friend needs help qualifying for an apartment. You offer to co-sign.
The moment you co-sign, that debt shows up on your credit report as 100% yours, regardless of who’s actually paying. Your DTI goes up. Your loan can be killed.
Even the underlying credit inquiry from the co-signed loan application can hurt. Wait until after closing. Always.
5. Closing or Opening Bank Accounts
This sounds harmless. It often isn’t.
If you close an account that was being used to verify your reserves, those reserves disappear from the file. If you open a new account and shuffle money into it, the lender now needs to source and document every transfer. Both can trigger delays or denials.
Same rule as the credit card: leave your account structure exactly as it was at pre-approval until after closing.
6. Making a Big Purchase That Drains Your Reserves
Mortgages require not just enough for the down payment and closing costs — but also documented reserves left over (usually 2-6 months of mortgage payments depending on the loan type).
If you drain those reserves on a car, a vacation, an engagement ring, or anything else, the lender re-checks before closing and finds the cushion is gone. Loan denies.
If you absolutely must spend money during the loan process, talk to your loan officer first. Sometimes we can re-structure. Sometimes we can’t.
7. Letting an Account Go Late — Even by a Day
Your credit report will be re-pulled before closing. If you’ve added a 30-day-late to your record since pre-approval, your score can drop 50-100 points overnight. That changes your rate tier, can push you out of your loan program entirely, and in worst cases denies the loan.
Set every bill to autopay during the loan process. Don’t trust yourself to remember a single payment in the middle of a move.
The Pattern Behind All of These
Notice the theme: everything that was true at pre-approval needs to still be true at closing. Same job, same accounts, same credit, same reserves, same debts.
The lender’s job is to confirm nothing has changed for the worse. Your job — until those keys are in your hand — is to make sure nothing has.
What’s Actually Safe to Do?
Plenty:
- Paying your regular bills on time
- Saving more money (always good)
- Continuing your current job and income
- Working with your loan officer on any documentation requests
- Asking your loan officer before making any financial decision you’re unsure about
That last one is the most important. The rule I tell every client: if you’re not sure whether something will affect your loan, call me before you do it, not after. A 30-second phone call can prevent a multi-week delay or a denied loan.
The Bottom Line
Pre-approval is the starting line, not the finish line. The buyers who close smoothly are the ones who keep their financial picture absolutely boring between pre-approval and the keys.
If you’re thinking about buying — or you’re already pre-approved and have questions about what’s safe to do — call, text, or email me. I’d rather answer ten “is this okay?” questions than try to fix one preventable disaster the week before closing.
Garry McDonald
Loan Officer | Tried & True Home Loans
(949) 534-6686 | gmcdonald@triedandtruehomeloans.com
DRE# 01781703 | NMLS# 1922072