Editor’s Note: I originally shared these tips a while back, but the financial world moves fast! I’ve updated this post for 2026 to include new warnings about Venmo, “Buy Now, Pay Later” apps, and other modern hurdles that can trip up your mortgage approval.

Don’t Miss Any Payments

Ensure that you continue to make timely payments on all your bills and debts after applying for a home loan. Missing payments will be a big hit to your credit and can harm your score and jeopardize your mortgage approval.

Don’t Make Large Purchases

Avoid making significant purchases such as a new car or expensive furniture on credit, as it can increase your debt-to-income ratio and affect your ability to get a loan. Wait until after closing to buy the couch, refrigerator, washer / dryer.

Don’t Change Jobs

Changing jobs or quitting your current job can disrupt your financial stability and raise concerns for your lender. It’s best to maintain stable employment during the mortgage approval process.

Don’t Get New Credit

Opening new credit accounts or applying for new credit cards can lower your credit score and signal financial instability.

Don’t Pay Off Old Debt

Closing old credit accounts can shorten your credit history and potentially decrease your credit score. It’s better to keep these accounts open, even if they have a zero balance, unless otherwise advised by your Lender.

Don’t Max Out Any Credit Cards

Maintain responsible credit usage by avoiding maxing out credit cards or making late payments, as it can negatively impact your credit score and mortgage approval.

Don’t Co-Sign for Others

Co-signing a loan for someone else can increase your debt obligations and affect your debt-to-income ratio. It will potentially impact your mortgage approval.

Don’t Change Anything with Your Banking

Avoid transferring large sums of money between bank accounts or making large cash deposits. It can complicate the verification process. Refrain from making significant changes to your financial situation, such as liquidating assets or making large withdrawals or deposits, as it can raise red flags.

Don’t Apply for Other Loans

Refrain from applying for new loans, including personal loans or lines of credit. It will impact your credit score and debt-to-income ratio, potentially affecting your mortgage approval.

Don’t Ignore Requests from Your Lender

Respond promptly to any requests for additional documentation or information from your lender to ensure a smooth mortgage application process.

Don’t Do ANYTHING that Will Change Your Finances

Avoid depositing large sums of money into your bank account without proper documentation. It can raise suspicions and complicate verification. However, you can continue to save money for your down payment, closing costs, and future homeownership expenses. Avoid dipping into your savings for non-essential purchases. Avoid making risky investments or financial decisions that could impact your ability to afford your mortgage payments.

Don’t Withhold Any Financial Information

Be honest and transparent with your lender throughout the mortgage application process. Failing to disclose relevant information could lead to delays or even denial of your requested mortgage. If you received a pre-approval, meet any conditions specified by the lender promptly and accurately.

Don’t Fall Into the “Buy Now, Pay Later” Trap

Today, it’s the “Klarna” or “Afterpay” button at checkout. Even small installment loans for shoes or home decor can count as undisclosed debt. If the button says “Pay in 4,” JUST SAY “NO” until you have the keys.

Don’t Lose Your Zelle and Venmo Paper Trail

If you’re moving hundreds of dollars via apps, your Lender will want to see the “birth certificate” for every transfer. Keep app transfers small and boring.

Don’t Dispute Credit Lines Mid-Process

Trying to “clean up” your credit score by disputing an old bill can actually freeze your application. Most Lenders cannot move forward until a credit dispute is fully resolved.

Don’t Get Messed Up in the “Side-Hustle” Shuffle

If you have a new side-hustle (like driving for Uber or an Etsy shop) don’t let those business expenses muddy up your personal bank accounts right before closing. Keep your personal and business buckets separate.

DO Contact a Reputable Realtor

The home buying process is often difficult and full of hundreds of pages of legalese to wade through. For expert advice with no obligation on buying or selling a home in this ever-changing real estate market, contact a professional Realtor. It’s been my joy for several decades to help hundreds of satisfied customers work their way through the process with a keen eye to making the process as stress-free and enjoyable as possible. Call me today to discuss your personal real estate goals.