Buying a home is one of life’s most exciting milestones. As your lender, we want your closing day to be smooth and stress-free. Unfortunately, small missteps in the final stretch can delay—or even derail—your closing.
Here are five common mistakes to avoid before closing on your new home.
1. Making Significant Purchases or Opening New Credit
Buying new furniture or appliances for your new home is common. However, doing this before closing can hurt your credit history and your fico score.
Why it matters: Lenders often recheck credit accounts right before closing. New debt or inquiries can affect your credit score, and even alter your credit limit or line of credit. These changes can modify your debt-to-income ratio, which may require you to get re-approved for your loan. Learn more about the impact of your credit score when applying for a mortgage.
What to do instead: Wait until after closing day to open new accounts or make significant purchases.
2. Changing Jobs or Income Sources
Career growth is exciting—but a sudden change in employment can complicate underwriting.
Why it matters: Lenders verify employment and income stability up until closing. Switching jobs, industries, or pay structures (e.g., from salary to commission) could require re-verification and delay the process.
Tip: If you anticipate a job change, talk to your lender before making the move. Maintaining stability during this period is a good idea to protect your good credit score.
3. Delaying Document Requests
Your lender may request updated bank statements, pay stubs, or explanations during the final review.
Why it matters: Delayed documentation can push back closing dates and even impact interest rates.
What to do instead: Respond quickly to your lender's requests for documentation. Keep your financial records and personal information organized during the process to prevent errors or identity theft concerns.
4. Moving Money Between Accounts Without Explanation
Large or unexplained deposits can raise red flags.
Why it matters: Lenders need to check where all funds for closing and down payments come from. This is to follow lending rules and prevent fraud.
Tip: Before you transfer funds or accept gifts, consult your lender to ensure you document everything properly. Missteps could delay the release of your funds for closing costs.
5. Ignoring Final Credit or Loan Conditions
Assuming that “clear to close” means all done is a common mistake - but last-minute items can still arise.
Why it matters: Missing items, like proof of insurance or a signature on updated forms, can delay your closing. These small oversights can affect your lender’s final loan approval process.
What to do instead: Stay in close communication with your lender and real estate agent right up to the finish line. It’s always a good idea to confirm that you meet every requirement before funding.
Final Thoughts
Closing on your new home should be a celebration, not a source of stress. By avoiding these common pitfalls and keeping your lender informed, you’ll help ensure a seamless path to homeownership.
Your lender partner is here to guide you every step of the way—because when builders and lenders work together, homebuyers win. Check out 3 reasons to choose a preferred lender.
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Featured Expert
Shannon Alexander - Fairway Independent Mortgage Corporation
NMLS #377688
With over two decades in the mortgage industry, Shannon is a Senior Loan Officer with The Wood Group of Fairway, serving Central Texas since 2010. Known for her attention to detail, outstanding customer service, and dedication to helping clients make smart financial decisions, she brings clarity and confidence to the home loan process.
This article is provided for informational purposes only. Omega does not warrant or guarantee the accuracy of the information provided and makes no representations associated with the use of this information as it is not intended to constitute financial, legal, tax, or mortgage lending advice. Omega Builders encourages you to seek the advice of professionals in making any determination regarding, financial, legal, tax, or mortgage decisions as only an informed professional can appropriately advise you based upon the circumstances unique to your situation.
